More money, less taxes, and smarter spending: Finance Minister breaks down new economic reforms

Finance Minister Dr. Cassiel Ato Forson has shared the benefits of new laws signed by President John Mahama. He emphasized their role in providing financial relief and boosting economic growth.

In a Facebook post, the Minister highlighted key wins for Ghanaians. These include repealing the Electronic Transfer Levy (E-Levy), increased funding for social programs, tax reforms, and stricter financial discipline.

**E-Levy Repealed: More Money in Your Pocket**

The Finance Minister confirmed that the E-Levy is officially scrapped. This means no extra charges for mobile money transactions.

“This is a major relief for ordinary Ghanaians,” he stated. It also supports businesses by making digital payments cheaper.

**Tax Relief: Lower Costs for Drivers and Investors**

Other tax relief measures have been introduced:

- **No Tax on Lottery & Betting Winnings:** Winners will keep their full earnings.

- **No More VAT on Motor Insurance:** Vehicle owners will pay less for insurance.

**GH¢3.8 Billion Redirected to Social Programs**

The Minister announced that GHS 3.8 billion will be redirected to critical social programs. This comes from adjusting the tax refund ceiling.

“We are investing in areas that impact citizens' lives,” he explained. The funds will support free sanitary pads, school feeding programs, and vulnerable households through LEAP.

These interventions aim to improve education, health, and social welfare for millions of Ghanaians.

**Education, Healthcare, and Infrastructure Receive a Major Boost**

The government plans to increase spending on hospitals, schools, and roads. This follows reforms that remove caps on funding these sectors.

“We are ensuring proper funding for free secondary education,” he said. Health and infrastructure projects benefiting communities will also be prioritized.

**New Fiscal Rules to Prevent Reckless Spending**

The government is introducing tougher rules to control debt and prevent wasteful spending.

Key measures include:
- An Independent Fiscal Council to monitor spending.
- A debt cap of 45% of GDP by 2034.
- A primary surplus of 1.5% of GDP annually until 2034.

“These reforms will prevent excessive government spending,” the Minister stated.

**Stronger Public Procurement Laws to End Wasteful Projects**

To curb corruption, commencement certificates are now required before awarding contracts.

“This ensures every project started is properly funded,” he explained.

**Oil Revenues to Fund Infrastructure Under ‘The Big Push’**

All oil revenue will now fund major infrastructure projects under “The Big Push.”

“We are using our resources to build lasting infrastructure,” the Minister emphasized.

**Environmental Policy Overhaul: Emissions Levy Scrapped**

The Emissions Levy has been removed while reaffirming Ghana’s commitment to environmental protection. Better policies will tackle pollution without additional taxes on citizens.

**Higher Taxes for Mining Companies to Ensure Fair Contribution**

Gold mining companies will pay higher taxes on super-normal profits. This ensures Ghana benefits fairly from its resources.

“Mining companies make significant profits; they should contribute more,” he noted.

**A New Era of Economic Stability and Growth**

The Finance Minister concluded that these reforms will ease financial burdens and improve public services.

“This resets Ghana’s economy for long-term stability,” he stated while emphasizing strong government finances.