The Minister of Finance, Dr. Cassiel Ato Baah Forson, has announced the government’s decision to abolish several taxes, including the 10% withholding tax on betting winnings, the 1% Electronic Transfer Levy (E-Levy), and other levies affecting businesses and individuals.
Addressing Parliament, Dr. Forson highlighted concerns over the misuse of the Tax Refund Account in recent years. A study conducted over the past eight years revealed that GHS29.11 billion had accumulated in the account, but only GHS12.5 billion—43% of the total—was used for legitimate tax refunds.
The remaining GHS16.6 billion, accounting for 57% of the funds, was misapplied, violating the Revenue Administration Act, 2016 (Act 915) and the Public Financial Management Act, 2016 (Act 921).
To address this, the government is reducing the tax refund ceiling from 6% to 4% of total revenue, a move expected to save GHS3.8 billion in 2025 alone. According to Dr. Forson, these savings will cover the revenue shortfall caused by eliminating the E-Levy (GHS1.9 billion) and the Betting Tax (GHS180 million).
“As a result of this reduction, we have already secured GHS3.8 billion for 2025 from a single measure. This is sufficient to compensate for the taxes we are removing,” Dr. Forson told Parliament.
Among the tax relief measures announced, the government plans to; Abolish the 10% withholding tax on lottery winnings (Betting Tax), Remove the 1% Electronic Transfer Levy (E-Levy), Scrap the Emission Levy on industries and vehicles, Eliminate VAT on motor vehicle insurance policies and Abolish the 1.5% withholding tax on the sale of unprocessed gold by small-scale miners.
Dr. Forson emphasized that these tax cuts are designed to ease financial burdens on households, improve disposable incomes, support business growth, and enhance tax compliance.
“The removal of these taxes will alleviate financial strain on citizens and create a more business-friendly environment,” he stated.
