Deputy Finance Minister-Designate Dismisses Prospect Of New Taxes In 2025 Budget

• The Deputy Finance Minister-designate has stated that the government will not introduce new taxes in the upcoming budget
• Thomas Nyarko Ampem said the government would instead focus on improving tax compliance and expanding the tax base
• The Deputy Finance Minister-designate was responding to suggestions from the opposition that new taxes would be introduced

Deputy Finance Minister-designate Thomas Nyarko Ampem has said the government will not introduce new taxes in the upcoming budget, despite concerns raised by the Minority.

Ampem dismissed concerns from the opposition that the John Mahama administration would introduce increase the financial burden on Ghanaians.

At the national economic dialogue, Ampem dismissed these concerns.

He said the government would instead focus on improving tax compliance and expanding the tax base.

“The Finance Minister has said this many times - we do not need to introduce new taxes to rake in more revenue. We are going to broaden the tax base. We are actually going to enhance compliance. And you will hear a lot of this in the budget when it is presented. And you’ll see.

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“To be honest with you, because we have been denied access to the international bond market, we have to do two things - enhance revenue and also manage expenditure," he added.

The theme of the forum is 'Resetting Ghana: Building the Economy We Want Together'.

As the forum progresses, stakeholders will further deliberate on actionable strategies to restore economic stability and drive long-term development.

The forum will focus on sustainable macroeconomic stability, promoting economic transformation, implementing structural reforms, advancing infrastructure development, ensuring private sector-led growth and restoring good governance.

The government outlined seven key areas of reform to turn the economy around as the Mahama administration embarks on its reset.

These were:

• Enhancing Domestic Revenue Mobilisation
• Pursuing Qualitative Fiscal Consolidation
• Ensuring Compliance with Public Financial Management and Procurement Laws
• Enhancing Efficiency in Public Spending
• Phasing Out Costly and Ineffective Subsidies
• Reforming State-Owned Enterprises
• Strengthening Ghana’s Fiscal Framework

Finance minister Ato Forson's comments on taxes

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During his vetting, Cassiel Ato Forson pledged to remove both the 1% Electronic Transfer Levy and the betting tax from the government’s first budget. He argued that both taxes hinder economic progress.

Specifically, the Finance Minister said that the E-Levy discouraged digital transactions and obstructed the country’s move towards a cashless economy, while betting tax generated minimal revenue.

“My position on the E-levy is well known and I do not intend to run from it.”

With the Mahama administration set to scrap several taxes introduced by the Akufo-Addo administration, Forson was also confronted with how the new government would raise revenue.

He spoke about working towards increasing tax compliance and widening the tax net.

“You don’t necessarily have to increase taxes before you rake in revenue."

Sammy Awuku speaks on scrapping of betting tax

Sammy Awuku, a former Director-General of the National Lottery Authority, backed the scrapping of the betting tax.

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Awuku, now the Akuapem North legislator, said the tax on betting and lottery winnings was counterproductive.

The former NLA boss argued that the tax makes illegal betting operators more attractive to those looking to gamble.

The 10% withholding tax on betting and lotteries was introduced on August 15, 2023, to raise about GH¢400 million annually.

The Ghana Revenue Authority planned to implement the 10% withholding tax on the gross winnings from all lotteries from January 2024.

National Lottery Authority and Private Lotto Operators were granted a six-month extension to prepare and implement the tax.

In 2024, however, Awuku noted that this was unsuccessful. The government was only taxing winnings from sports betting.

With the pledge to scrap the tax, President Mahama previously said he would explore alternatives to the betting tax if he wins power.

Mahama's rival and the New Patriotic Party flagbearer, Dr Mahamudu Bawumia, also promised to scrap the betting tax if elected president.

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Afenyo-Markin wants higher government worker salaries

YEN.com.gh reported that Minority Leader Alexander Afenyo-Markin appealed for a larger salary increase for government workers.

The government approved a 10% wage increase for public sector workers and the opposition leader described it as unacceptable.

Despite the contention, the wage increase followed successful negotiations between the Ghanaian labour unions and the government.

This increment in government worker wages took effect from March 1 and marked the second wage adjustment in less than a year.

Proofread by Bruce Douglas, senior copy editor at YEN.com.gh

Source: YEN.com.gh