2025 budget looks promising, sustainable – AGI

The President of the Association of Ghana Industries (AGI) for Greater Accra, Tsonam Akpeloo, has described the 2025 budget as promising and sustainable, particularly for businesses.

Speaking at the Oxfam Tax Dialogue on Channel One TV on March 18, Akpeloo welcomed the scrapping of the Electronic Transaction Levy (E-Levy), highlighting its positive impact on Small and Medium Enterprises (SMEs), which heavily rely on mobile money transactions.

He noted that many SMEs had been significantly affected by the levy, as mobile money remains a crucial financial tool for their operations. According to him, the removal of some taxes in the budget signals a more stable economic plan for the private sector.

However, he emphasized the need to reduce the tax-to-GDP ratio, which currently stands at 40 percent, to a more sustainable 20 percent by broadening the tax base.

As part of tax relief measures, Finance Minister Dr. Cassiel Ato Forson has introduced financial bills to formally abolish the one percent E-Levy, the betting tax, the emission levy on industries and vehicles, VAT on motor vehicle insurance policies, and the 1.5 percent withholding tax on winnings from unprocessed gold by small-scale miners. These tax cuts align with the government’s commitment to reducing the tax burden on businesses and fostering economic growth.