Introduction of New Taxes Expected in 2025 Budget

The government is expected to introduce new taxes on key sectors, including financial services, as part of its first budget statement, scheduled for March 11, 2025. This move is aimed at finding alternative revenue sources, following the previous administration’s promise to eliminate the 1% E-Levy, the COVID-19 levy, and the 10% levy on betting winnings. Sectors like mining, telecommunications, and real estate might face new taxes, as suggested by former Finance Minister Dr. Mohammed Amin Adam. These potential tax changes are expected to play a major role in the new administration’s first budget.

The removal of these taxes, as promised by the government within its first 100 days in office, especially the E-Levy and the COVID-19 tax, is predicted to result in a GHC 22.15 billion revenue loss between this year and 2027. Originally, the E-Levy was expected to generate GHC 2.1 billion last year but is now projected to bring in GHC 2.4 billion in 2025, while the COVID-19 levy is forecasted to contribute GHC 3.97 billion, up from GHC 3.1 billion in 2024.

While the government has stated that no new taxes will be introduced in the upcoming budget, tax analysts have expressed skepticism. Francis Timore-Boi suggested that the government might adjust certain taxes, such as the communication service tax, in order to compensate for the anticipated loss in revenue from the E-Levy. He also highlighted the importance of engaging stakeholders from sectors that may be affected by the introduction of new taxes, emphasizing the need for consultation before implementing changes.

Additionally, Samuel Amegayibor, Executive Director of the Ghana Real Estate Developers Association (GREDA), has petitioned the Minister of Finance, Dr. Cassiel Ato Forson, urging him to reconsider the proposed five percent VAT on immovable properties. Amegayibor called for more focused and fair taxation policies that consider the impact on affected industries.