Finance Minister, Dr. Cassiel Ato Forson has disclosed that government will save an amount of GH¢3.8 billion by reducing the tax refund ceiling points from 6% to 4%.
Presenting government’s 2025 Fiscal policy to Parliament on Tuesday, March 11, 2025, the finance minister announced that government has reduced the current tax refund ceiling by 2 percentage points from 6% to 4% of Total Revenue as defined in Section 69 of the Revenue Administration Act, 2016 (Act 915).
Dr. Ato Forson also announced that government will abolish the E-levy and betting tax which generated GH¢1.9 and GH¢180 million respectively.
However, the minister says the revenue shortfall from the removal of the E-Levy and the betting tax will be covered by the GH¢3.8 billion saved from the tax refund ceiling reduction.
“Mr. Speaker, already we have saved GH¢3.8 billion for 2025 alone from only one source and this is enough to close the gap from the taxes that we have removed,” he said.
The five nuisance taxes to be removed are:
- The 10% withholding tax on lottery winnings (Betting Tax).
- The 1% Electronic Transfer Levy (E-Levy).
- The Emission Levy on industries and vehicles.
- The VAT on motor vehicle insurance policies.
- The 1.5% withholding tax on unprocessed gold winnings by small-scale miners.
Dr. Forson emphasized that eliminating these taxes will help ease pressure on households and stimulate economic activity.
https://editors.3news.com/news/government-scraps-5-nuisance-taxes-in-2025-budget/
