The repeal of these taxes are anticipated to enhance consumer spending
Some Ghanaian economic experts have urged the government to adopt viable strategies to widen the tax net to enhance revenue generation.
They called for prudent and reasonable public expenditure to ensure accrued funds and revenues are not misused.
The recommendations follow President John Dramani Mahama‘s assent to bills repealing the Electronic Transfer Levy (E-levy), Betting Tax, and Emissions Levy.
Jeffrey Kabutey Ocansey, Executive Director of Revenue Mobilisation Africa, speaking on an Accra-based television program, called on the government to prioritise investment in critical sectors like agriculture.
This includes mitigating damage to farmlands caused by illegal mining activities. He encouraged a targeted focus on the night economy and informal sector, areas with the lowest tax contribution levels.
Ocansey recommended developing a strategic industrial path through skills training to boost local production and create employment.
Another expert, Wonder Madilo, a development consultant, addressed the potential impact of US President Donald Trump’s 10% tariff on exports from Ghana and other countries.
He described it as a wake-up call for Ghana to develop homegrown solutions and eliminate unnecessary public spending. Madilo urged the government to prioritise economic growth and citizen well-being.
Also, Yaw Sompah, a finance analyst, cited Ghana Statistical Service data indicating 92% of businesses operate within the informal sector, posing challenges to effective tax collection.
He urged the Ghana Revenue Authority to introduce innovative revenue-boosting strategies following the E-levy repeal.Sompah recommended formalising the informal sector through identification, categorization, licensing, and registration to allow for proper regulation and monitoring.
Meanwhile, the government is introducing measures to increase disposable incomes and reduce the overall tax burden on citizens as part of its broader tax reform agenda.
Removing the E-levy is expected to increase disposable income for individuals and households, stimulate digital transactions, encourage financial innovation, and reduce business costs.
The repeal is anticipated to enhance consumer spending, energize economic activity across sectors, and provide financial relief to companies previously affected by the levy.
The Income Tax (Amendment) Bill, 2025, aims to provide additional income for affected individuals by removing certain withholding taxes.
Withdrawing the withholding tax on unprocessed gold purchases is projected to curb smuggling, ensuring Ghana derives optimal benefits from its mineral resources.
