2025 budget: 'We welcome tax removals but wanted betting tax retained' — IEA

The Institute of Economic Affairs (IEA) has welcomed the government’s decision to scrap some “nuisance and obsolete” taxes in the 2025 Budget.

The institution, however, expressed disappointment over the complete removal of the betting tax instead of its earlier recommendation to maintain it at a reduced rate.

In a statement assessing the budget presented by Finance Minister Dr. Mohammed Amin Adam on March 11, the policy think tank commended the government’s move to abolish the Electronic Transfer Levy (E-Levy), Emissions Tax, and Covid-19 Health Recovery Levy.

“The IEA welcomes the decision by the Minister to abolish certain nuisance and/or obsolete taxes in accordance with the Government’s promise, which the Institute endorsed, including the E-Levy, Emissions Tax and Covid Tax,” the statement dated March 18, read in part.

It added, “However, the IEA notes that contrary to its suggestion for the betting tax to be maintained albeit at a reduced rate of 5% instead of 10% for both revenue and deterrence reasons, the Minister decided to abolish it completely.”

The policy institute further criticized the government’s decision to maintain the Growth and Sustainability Levy (GSL) and increase its rate from 1% to 3% for extractive companies.

“The IEA has argued for Ghana to demand more revenue from the extractive sector, including a Super-Profit or Windfall Tax. From that standpoint, the IEA does not believe that the GST of 3% is high enough,” it stated.