Renowned tax practitioner, Professor Foster Amoako, has described the decision by the John Dramani Mahama administration to abolish five major taxes as one of the most beneficial moves for Ghanaians.
According to him, this measure will significantly reduce the financial burden on the populace and enhance economic relief.
The recent budget, presented by the Finance Minister, announced the removal of several taxes introduced by the previous NPP administration. These include the 10% withholding tax on betting winnings (Betting Tax), the 1% Electronic Transfer Levy (E-Levy), the Emission Levy on industries and vehicles, VAT on motor vehicle insurance policies, and the 1.5% withholding tax on winnings from unprocessed gold by small-scale miners.
Professor Amoako particularly praised the decision to abolish the 1.5% withholding tax on unprocessed gold winnings, noting that it would help curb gold smuggling to neighboring countries. He explained that keeping a greater portion of Ghana’s gold within the country would allow the nation to maximize its economic benefits.
Beyond the tax cuts, he acknowledged the government’s plan to reintroduce road tolls and increase the Growth and Stability Levy from 1% to 3%, measures aimed at compensating for revenue losses.
However, he pointed out a fundamental challenge in Ghana’s taxation system, stressing that about 90% of governance funding relies on taxation. He highlighted inefficiencies in tax law enforcement and emphasized the need for a broader tax base to ensure more citizens contribute. Expanding Internally Generated Funds (IGF), he argued, would provide a more sustainable revenue stream for national development.
As Ghana navigates its evolving fiscal policies, Professor Amoako urged the government to balance tax relief with revenue generation to drive long-term economic stability.
