Government Plans to Cover Lost Revenue After Removing E-Levy, Betting Tax – MyJoyOnline Reports
The Finance Minister, Dr. Cassiel Ato Forson, has shared a detailed plan to make up for the money the government will lose after removing taxes like the E-Levy, Betting Tax, and COVID-19 Levy. According to MyJoyOnline, he explained this plan while presenting the 2025 Budget on March 11.
To cover the shortfall, the government will focus on collecting more taxes efficiently and cutting down unnecessary spending. MyJoyOnline reports that one of the biggest changes is lowering the amount of money set aside for tax refunds.
The minister said that in the past eight years, GH₵29.11 billion was set aside for tax refunds, but only 43% was actually used for that purpose. To stop this waste, the government will reduce the tax refund ceiling from 6% to 4%, which will save GH₵3.8 billion.
Dr. Forson, as quoted by MyJoyOnline, explained that this GH₵3.8 billion is enough to cover the lost revenue from removing the E-Levy (GH₵1.9 billion) and the Betting Tax (GH₵180 million). He assured Ghanaians that there’s no need to worry about revenue loss because the government has “stopped the bleeding.”
In addition to this, MyJoyOnline states that the government will introduce new laws to make tax collection more efficient. The Revenue Administration Act will be updated to improve tax collection, and property tax collection will be strengthened to help local governments. The government also wants to simplify the VAT system, making it fairer for businesses and consumers.
Another major step, as highlighted by MyJoyOnline, is reducing government spending. The number of ministries has been cut from 30 to 23, and ministerial appointments have been reduced from 88 to 60. This move will save money on salaries and government expenses.
Additionally, non-essential programs like YouStart, One District One Factory, and GhanaCARES will be stopped to reduce costs.
On the energy front, MyJoyOnline reports that ECG and NEDCo will introduce new ways to collect payments, and the government will renegotiate deals with independent power producers to reduce electricity costs.
The Energy Sector Levies Act (ESLA) will also be reviewed to merge some energy-related levies and use the funds to pay off energy sector debts.
Dr. Forson, as quoted by MyJoyOnline, assured Ghanaians that these measures will ensure financial stability while reducing the tax burden.
The government’s focus is on stopping wasteful spending and improving tax collection without introducing new taxes.
For more details, visit myjoyonlin.come to read the full report on how the government plans to handle the tax changes.