Key Tax Cuts and Policy Changes
In a surprising turn of events, Minister of Finance Ato Forson announced major tax eliminations under President John Dramani Mahama’s administration during the presentation of Ghana’s 2025 Budget. The following tax measures have been abolished:
- 1% E-Levy Tax
- Emissions Levy
- VAT on Motor Vehicle Insurance Policies
- 10% Betting Tax
These bold economic reforms are aimed at providing financial relief to Ghanaians and stimulating economic growth.
Support for Tidal Wave Victims
The government has allocated 200 million Ghana Cedis (GHC) to assist victims of tidal waves that destroyed homes and displaced citizens in affected areas. This financial support is expected to aid in rebuilding communities and providing relief to those impacted by the disaster.
24-Hour Economy Policy to Be Presented in Parliament
In line with its economic transformation agenda, the Mahama administration will soon present the 24-hour economy policy to Parliament. This initiative is designed to boost employment, increase productivity, and enhance economic growth by promoting round-the-clock business operations across various sectors.
Increased Budget for Free Senior High School (SHS) Education
The government has allocated 3.5 billion Ghana Cedis for the Free SHS program this year. Additionally, the feeding grant per student has been increased from 1.20 GHC to 2 GHC, ensuring better nutrition and improved learning conditions for students in public schools.
Bank of Ghana Seeks 53 Billion GHC Bailout
The Bank of Ghana is currently seeking a 53 billion Ghana Cedis bailout to address its negative equity position, which was caused by the previous New Patriotic Party (NPP) administration. This bailout is aimed at stabilizing the banking sector and restoring confidence in Ghana’s financial system.
Non-Academic Fees Covered for First-Year Public Tertiary Students
The government has allocated 499.8 million Ghana Cedis to cover non-academic fees for all first-year students in public tertiary institutions. This policy aims to reduce the financial burden on students and their families, making higher education more accessible.
Abolition of 1.5% Withholding Tax on Small-Scale Miners
In a move to support the small-scale mining sector, Minister Ato Forson announced the abolition of the 1.5% withholding tax on unprocessed gold. This decision is expected to boost local gold production, reduce smuggling, and encourage responsible mining practices.
A Budget Focused on Economic Relief and Growth
The 2025 Budget under President Mahama’s administration demonstrates a clear commitment to tax relief, education, economic transformation, and financial stability. With these bold reforms, the government aims to ease economic hardship, support key sectors, and promote long-term national development.
