The government is set to present a bill to Parliament today seeking to abolish several taxes, including the Electronic Transaction Levy (E-Levy), COVID-19 Levy, and the 10% tax on lottery winnings, commonly referred to as the betting tax.
Finance Minister Dr. Cassiel Ato Forson confirmed this move during his appearance on JoyNews’ PM Express on Tuesday, March 11, 2025, stating that the bill would be submitted under a certificate of urgency.
“Tomorrow morning, I will be going to Parliament to submit the bills, and I expect Parliament to take them through a certificate of urgency,” Dr. Forson said.
The Minister assured that the repeal process would be swift due to the simplicity of the bills.
“Repealing the taxes will be one clause each. Repealing the betting tax is very easy, the e-levy and all of those things we are repealing are quite easy,” he added.
He further explained that as a revenue bill, the proposed tax removals qualify to be presented under a certificate of urgency.
“It’s a revenue bill, and under the Constitution, you have any way to lay finance bills under a certificate of urgency,” he stated.
During the presentation of the 2025 fiscal budget in Parliament on Tuesday, March 11, Dr. Forson reaffirmed the Mahama-led government’s commitment to eliminating taxes considered as “nuisance taxes” introduced by the previous administration.
“Mr. Speaker, we will abolish the 10% withholding tax on winnings from lotteries, otherwise known as the ‘betting tax.’ We will abolish the Electronic Transfer Levy (E-Levy) of 1%. We will abolish the emission levy on industries and vehicles. We will abolish the VAT on motor vehicle insurance policies. And we will abolish the 1.5% withholding tax on the sale of unprocessed gold by small-scale miners,” he outlined.
Dr. Forson stated that the removal of these taxes aims to alleviate financial pressures on households, enhance disposable incomes, and foster business growth.
“…the removal of these taxes will ease the burden on households and improve their disposable incomes. In addition, it will support business growth and improve tax compliance,” he added.
The proposed tax eliminations include six key levies: the 10% betting tax, the 1% E-Levy, the emission levy, VAT on motor insurance, the 1.5% withholding tax on unprocessed gold sales, and the COVID-19 levy. These will take effect once the 2025 budget receives parliamentary approval.
While some economic analysts have raised concerns about potential revenue losses, the government has outlined strategies to mitigate the impact. One such measure is adjusting the tax refund ceiling to generate savings that offset the expected revenue shortfall.
“Mr. Speaker, by reducing the ceiling on the tax refund from 6% to 4%, we will save GH¢3.8 billion. This amount is enough to close the revenue shortfall from the removal of the E-Levy, amounting to GH¢1.9 billion, and the betting tax of GH¢180 million,” Dr. Forson explained.
As of the end of 2024, the government had collected approximately GH¢6.4 billion from the COVID-19 Health Recovery Levy, GH¢246.9 million from the E-Levy, and around GH¢120 million from other taxes.
