In a major policy shift aimed at easing financial burdens on citizens and businesses, Minister of Finance Casiel Ato Forson has announced the abolition of several controversial taxes in the 2025 Budget.

Presenting the budget at Parliament House, Forson revealed that the government will eliminate the 10% withholding tax on lottery winnings (betting tax), the electronic transfer levy (E-Levy), the emission levy, and certain motor vehicle insurance policy charges.

He also disclosed that the 1.5% withholding tax on goods and gold transactions by small-scale miners will be scrapped.

According to Dr. Forson, these tax removals are expected to increase disposable income for households, support business growth, and enhance tax compliance.

Relief for Citizens and Businesses

The Minister emphasized that the decision to scrap these taxes is driven by the need to reduce financial pressure on individuals and businesses.

“The removal of these taxes will ease the burden on households and improve their disposable income,” he stated. He further argued that reducing tax obligations would encourage businesses to expand and create more jobs, contributing to economic growth.

Tax Refund Mismanagement

In a shocking revelation, Dr. Forson highlighted massive mismanagement in the tax refund account over the past eight years.

A government study found that ₵29.1 billion was approved for tax refunds, but only ₵12.5 billion (43%) was actually used for its intended purpose. The remaining ₵16.6 billion (57%) was misapplied, violating the Revenue Administration Act (Act 915).

Forson vowed to enforce stricter financial accountability to prevent such violations in the future. “We must ensure that public funds serve their rightful purpose,” he said, signaling the government’s commitment to fiscal responsibility.

Source: TheDotNews