Deloitte Ghana has cautioned against the removal of certain taxes in the 2025 budget because of the significant risk to the government’s ability to meet revenue targets.
In its analysis of the budget, the professional services firm noted that scrapping of these taxes is likely to result in revenue shortfalls.
Finance Minister Dr. Cassiel Ato Forson announced the elimination of the Electronic Transaction Levy (E-Levy), the Betting Tax, and the Emission Levy as part of efforts to ease the tax burden on citizens and businesses.
However, Deloitte warned that while these measures may provide relief, the resulting revenue losses could challenge the government’s ambitious revenue projections.
To mitigate the impact, Deloitte recommended robust stakeholder engagement, particularly with businesses affected by these changes.
It emphasised that securing the support and commitment of key stakeholders is essential for the successful implementation of alternative revenue-generating measures proposed in the budget.
The firm also acknowledged the government’s efforts to introduce revenue-enhancing measures to offset potential shortfalls.
However, it flagged concerns over the proposed upward review of the Growth and Sustainability Levy for mining companies, cautioning that, if not carefully managed, it could stifle growth in the sector.
The 2025 budget also includes plans to reintroduce road tolls, this time with a tech-driven collection system aimed at boosting efficiency.
While Deloitte welcomed the use of technology, it urged the government to conduct a thorough cost-benefit analysis to ensure the investment in toll administration yields a meaningful return.
Beyond the announced reforms, Deloitte stressed the urgent need for the government to expand the tax net, particularly to capture revenue from the informal sector—a segment with vast untapped potential.
“In this regard, we believe that leveraging technology, enhancing tax education and awareness, and simplifying compliance processes will be critical to success,” the firm noted.
For 2025, the government is targeting total revenue and grants of GH¢224.9 billion—an increase from the GH¢186.6 billion projected in 2024.
Tax revenue alone is expected to reach GH¢181.6 billion, representing about 80.7% of total revenue and grants.
Deloitte observed that this projection is anchored on improved revenue measures, anticipated to boost collections by 0.6% of GDP.