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Proposed taxes to be repealed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