Government has unveiled a comprehensive plan to revamp the country’s tax regime, aiming to alleviate the financial burden on households and businesses.
The proposal, presented by Finance Minister Dr. Cassiel Ato Forson, outlines the abolition of several taxes in the 2025 budget.
Dr. Forson announced the tax cuts in Parliament, stating, “Mr. Speaker, we will abolish the 10% withholding tax on winnings from lottery, otherwise known as the ‘Betting Tax’; we will abolish the Electronic Transfer Levy (E-Levy) of 1%; we will abolish the Emission Levy on industries and vehicles; we will abolish the VAT on motor vehicle insurance policy; and we will abolish the 1.5% withholding tax on winning of unprocessed gold by small-scale miners.”
The removal of these taxes is expected to have a positive impact on the economy, as Dr. Forson explained, “Mr. Speaker, the removal of these taxes will ease the burden on households and improve their disposable incomes. In addition, it will support business growth and improve tax compliance.”