2025 Budget: Reducing tax refunds to bridge tax removal gaps unprecedented — Prof Gyampo

The Acting Chief Executive Officer of the Ghana Shippers Authority, Professor Ransford Gyampo, has praised Finance Minister Dr. Cassiel Ato Forson for his revenue measures.

The political scientist specifically lauded the decision to address the revenue shortfalls caused by the removal of betting tax, e-levy, and other levies.

In a social media post following the budget reading on Tuesday, March 11, Prof. Gyampo noted that such a move requires deep knowledge and critical thinking.

“Reducing tax refunds from 6% to 4% to cater for tax removals is an unprecedented move. It is a novelty that requires brains from people who truly went to school and can think, not those who claim they went to school but didn’t learn anything,” he wrote.

His comments come after Finance Minister Dr. Cassiel Ato Forson reaffirmed plans to remove what he calls “nuisance taxes” introduced by the previous New Patriotic Party (NPP) government.

The approval of the 2025 budget statement will lead to the removal of the betting tax, e-levy, emissions tax, VAT on motor vehicle insurance policies, and the 1.5% withholding tax on winnings from unprocessed gold by small-scale miners.

Addressing concerns about how the resulting revenue shortfalls will be managed, Dr. Forson explained that reducing the tax refund ceiling from 6% to 4% would help cover the shortfall.

“Mr. Speaker, by reducing the ceiling on the tax refund from 6% to 4%, we will save GH¢3.8 billion. This amount is enough to close the revenue shortfall from the removal of the e-levy, which amounts to GH¢1.9 billion, and the betting tax, which accounts for GH¢180 million.

“Mr. Speaker, we have already saved GH¢3.8 billion for 2025 alone from just one source, and this is enough to close the gap created by the taxes we have removed,” he said.