Ghanaians will be glued to their radios and televisions as Finance Minister Dr. Cassiel Ato Forson presents government’s 2025 Budget and Policy Statement to parliament today.
Dr. Forson has signalled government’s intention to reduce domestic borrowing, ensuring that more financial resources are available to the private sector, and cut expenditure among others. The Finance Minister has assured that the 2025 Budget will target and cut wasteful expenditure.
Although the details are sketchy, credible information suggests government will make a significant allocation to the Agric sector as part of efforts to improve the country’s food security situation.
On revenue, Dr. Forson announced that government will roll out measures aimed at rationalising the country’s current tax structure, targetting the Value Added Tax.
Meanwhile, a pre-budget survey by auditing and accounting firm KPMG reveals that the country will lose about GH¢6.4billion in revenue if government cancels the Covid-19 and the E-levy taxes in the 2025 budget.
Minister of State for Government Communications, Felix Kwakye Ofosu, confirmed that government will abolish the E-Levy and COVID-levy in the upcoming 2025 budget,
Additionally, the firm asserted that for the country’s 24-hour economy to succeed it should focus on industries that naturally thrive with round-the-clock operations, like manufacturing, transport and logistics, healthcare, retail and hospitality, for instance.
The Ghana Hoteliers Association is calling for consolidation of multiple taxes – including the National Health Insurance Levy, VAT and the GETFund levy – into a single tax for the hospitality industry.
They complain that the current tax structure, combined with rising inflation, foreign exchange volatility and high utility tariffs, is placing immense pressure on their business. President-Ghana Hoteliers Association, Dr. Edward Ackah-Nyamike, wants government to take their concerns into account in the 2025 budget.
It is worthy of note that Finance Minister Dr. Cassiel Ato Forson has emphasised the 2025 Budget and Policy Statement will be instrumental in stabilising Ghana’s struggling economy.
He therefore stressed that the new administration is committed to implementing policies which will foster economic stability, including efforts to control inflation, maintain a stable exchange rate and create a more predictable economic environment.
