Ghana: Tax measures in 2025 budget

Includes increase in rate and extension of various special levies, but repeal of other special levies

The Minister for Finance on March 11, 2025, released the 2025 budget statement and economic policy, which includes the following tax proposals.

Changes to existing taxes

Individual (personal) income tax-free threshold: Increase in the monthly individual income tax-free threshold from GH¢490 to GH¢539 to reflect the approved 10% daily minimum wage
Growth and sustainability levy: Increase from 1% to 3% in the levy on the gross production of mining companies
Growth and sustainability levy (GSL) and special import levy (SIL): Extend sunset clause from 2025 to 2028
Energy Sector Levies Act: Consolidation of energy debt recovery levy, energy sector recovery levy, and sanitation and pollution levy into one single levy
Electric vehicle production: Provide customs concessions for the manufacture of two- and three-wheeled electric vehicles

Proposed taxes to be repealed

Withholding tax on lottery winnings: Repeal of 10% withholding tax on lottery winnings, including betting, gaming, and games of chance
Electronic transfer levy (e-levy): Repeal of the 1% levy on electronic transactions
Value added tax (VAT) on motor vehicle insurance policies: Exemption proposed
Withholding tax on unprocessed gold: Removal of the 1.5% withholding tax by small-scale miners
Emission levy: Eliminate the levy imposed on carbon dioxide equivalent emissions from specified sectors and internal combustion engine vehicle emissions

Compliance and administrative measures

Tax refund account cap: Reduction by 2 percentage points of total tax revenue (from 6% to 4%)
VAT regime review: Comprehensive reforms planned
Digitized tax systems: Rollout under the modified taxation system
Voluntary disclosure programme: Expansion of penalty and interest waiver for undeclared foreign accounts, accumulated arrears, and outstanding returns

Non-tax and other revenue initiatives

Road tolls: Reintroduction using technology-driven solutions
Legislative reforms of non-tax revenues: Development of strategic policy for improved service delivery, revenue mobilization, and management
Property rate collection reform: Implementation of a regulatory framework aligned with the Medium-Term Revenue Strategy and Local Government Act

Read a March 2025 report prepared by the KPMG member firm in Ghana

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Ghana: Tax measures in 2025 budget

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