Ghana’s new government has eliminated several “nuisance” taxes, initially implemented to secure IMF funding, citing the economic burden on citizens.
Finance Minister Cassiel Ato Forson announced the removal of five levies, including a mobile money transfer tax and a vehicle insurance VAT, during the 2025 budget presentation.
The decision comes as Ghana grapples with “severe distress” stemming from debt and financial deficits.
The government aims to alleviate the impact of soaring inflation and a depreciating currency on Ghanaians.
Forson stated that the tax removals would boost household incomes and support business growth.
Scrapped levies include taxes on lottery winnings, emissions, and unprocessed gold.
These measures were previously enacted to meet conditions for a $3 billion IMF bailout, secured in 2023.
Despite the revenue loss, the government assures that measures are in place to compensate.
Plans include amendments to the Revenue Administration Act to enhance tax collection, projected to yield 0.3 percent of GDP.
Enhanced road toll collection is also planned to support infrastructure development.
President John Mahama’s administration claims to have “stopped the bleeding” and is focusing on economic recovery.