Government announces removal of 5 nuisance taxes in 2025 budget
In a major tax relief move, Finance Minister Dr. Cassiel Ato Forson has announced the removal of five “nuisance taxes”, including the E-Levy and Betting Tax, as part of the 2025 Budget presented to Parliament on March 11, 2025.
Dr. Forson stated that this decision aligns with the government’s manifesto promise to ease financial pressure on citizens and businesses, while still working to increase non-oil tax revenue under the IMF-supported program.
The five nuisance taxes to be scrapped include:
- 10% Betting Tax (withholding tax on lottery winnings)
- 1% E-Levy (Electronic Transfer Levy)
- Emission Levy (on industries and vehicles)
- VAT on motor vehicle insurance policies
- 1.5% withholding tax on unprocessed gold winnings (for small-scale miners)
The Finance Minister emphasized that eliminating these taxes will boost disposable income, encourage business growth, and improve tax compliance.
Additionally, he revealed that GHS 16.6 billion from the Tax Refund Account had been misused over the past eight years, violating the Revenue Administration Act, 2016 (Act 915) and the Public Financial Management Act, 2016 (Act 921). To prevent further misuse, the tax refund ceiling will be reduced from 6% to 4% of total revenue.
This tax reform is expected to stimulate economic activity and reduce the cost of living for Ghanaians.
