The scrapping of certain nuisance taxes in the 2025 Budget presents a notable risk to the government’s ability to achieve its revenue target, Deloitte Ghana has disclosed in its analysis of the budget.
According to the professional services firm, this is due to the revenue losses that will result from scrapping of these tax handles.
The Finance Minister, Dr. Cassiel Ato Forson announced the scrapping of the Electronic Transaction Levy (E-Levy), the Betting Tax and the Emissions Levy in the 2025 Budget.
However, Deloitte recommended extensive stakeholder engagement with businesses that will be impacted by these measures.
It however commended the revenue-enhancing measures proposed to cover the potential shortfalls from the taxes to be scrapped. This is to ensure the government obtains their buy-in and commitment ahead of implementation.
For instance, the professional services firm said analysts have begun to hint that the upward review of the Growth and Sustainability levy for mining companies, if not properly managed, can constrict growth in the sector.
The government in the 2025 Budget plans to reintroduce road tolls with a tech-driven toll administration system will drive collection efficiency.
Deloitte said whilst the proposal to introduce technology to improve efficiency is commendable, it recommends the reintroduction of the road tolls to be guided by a comprehensive cost-benefit analysis of the same to ensure the revenue to be generated from the tolls will be worth the time and resources to be invested in administering same.
Government Must Prioritise Urgent Tax Expansion
Again, beyond the new measures proposed, it recommended for the government to also prioritise the urgent need to expand the tax net to cover the informal sector as the sector holds significant untapped revenue potential.
“In this regard, we believe the use of technology, tax education, and awareness creation and reforms to simplify compliance will be key for achieving this objective”, it added.
In 2025, the government is projecting GH¢224.9 billion in total revenue and grants, up from the 2024 budget of GH¢186.6 billion reported in 2024.
Deloitte said the projected revenue is underpinned by improved revenue measures which are expected to increase equivalent to 0.6% of Gross Domestic Product. Tax revenue is estimated at GH¢181.6 billion for 2025 and constitutes about 80.7% of projected Total Revenue and Grants.
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