Ghana Risks GH¢6.4 Billion Revenue Loss from Potential Tax Cancellations

A KPMG survey indicates that Ghana could lose about GH¢6.4 billion if the government abolishes COVID-19 and E-Levy taxes in the 2025 budget. The firm advises enhancing revenue systems through technology and better management strategies while suggesting industries beneficial for a 24-Hour Economy.

According to a recent pre-budget survey conducted by KPMG, Ghana risks a revenue loss of approximately GH¢6.4 billion if the government opts to eliminate the COVID-19 Levy and the E-Levy taxes in the upcoming 2025 budget. This information was detailed in KPMG’s 2025 Pre-Budget Survey submitted to the Ministry of Finance.

KPMG emphasized that abolishing these taxes could lead to significant revenue shortfalls. They recommended leveraging technology to enhance property rate management and administration while also suggesting a critical review of taxation within the digital and e-commerce sectors. The firm further urged improvements in public financial management systems to close procurement loopholes and minimize unnecessary expenditures, which are vital for fiscal sustainability.

Furthermore, the survey highlighted the necessity for Ghana to capitalize on its 24-Hour Economy. It suggested that the focus should be on industries that thrive with continuous operations, such as manufacturing, transportation, logistics, healthcare, retail, hospitality, and digital services. This approach would help meet growing consumer demand and enhance competitiveness in global markets.

The survey respondents expressed optimism that upcoming policy initiatives in the budget could serve as a foundation for economic recovery. They believe that new measures could significantly influence the trajectory of the economy in the near future.

In summary, KPMG’s pre-budget survey indicates that Ghana may face a considerable revenue loss of GH¢6.4 billion should the government remove the COVID-19 and E-Levy taxes. The firm advocates for technological advancements and better management practices to enhance revenue collection and fiscal responsibility. Furthermore, focusing on robust industries is essential for fostering a competitive 24-Hour Economy, with the potential for economic recovery hinging on effective policy initiatives in the budget.

Original Source: www.ghanaweb.com