The government has introduced two new taxes and levies, extended the duration of two existing taxes which expired at the end of 2024, and scrapped four levies and taxes as part of its 2025 Budget and Economic Policy.
The government introduced a significant increase in the Growth and Sustainability Levy on mining companies, raising it from 1% to 3% of their gross production.
The levy will remain in place from 2025 to 2028, affecting mining firms that now have to adjust their financial strategies to accommodate the higher tax burden.
Industry experts caution that this could impact investment in the sector and may lead to a reassessment of operational costs by mining companies.
In addition, the government also introduced 2% Growth and Sustainability Levy on specific sectors but did not mention them.

Special Import Levy, VAT on non-life insurance extended
Two other taxes that were set to expire at the end of 2024—the Special Import Levy and the Value Added Tax (VAT) on non-life insurance—have been extended until 2028.
The extension has raised concerns among businesses in the import sector and insurance industry, as it increases their financial obligations and may lead to higher costs for consumers. Importers warn that the continued imposition of the Special Import Levy could further escalate the cost of goods, worsening inflationary pressures.
Similarly, insurers fear that extending VAT on non-life insurance policies could make coverage more expensive and reduce insurance penetration in the country.

Scrapping of 4 taxes
On a positive note, the government has scrapped four existing taxes: the COVID-19 Levy, the Electronic Transactions Levy (E-Levy), 10% withholding tax on betting wins and the 1.5% withholding tax on gold exports.
The removal of the E-Levy, in particular, is expected to be a relief for businesses and individuals who had expressed concerns over its impact on digital transactions.
Small-scale gold exporters also stand to benefit, as they will no longer be subjected to the withholding tax, potentially boosting the competitiveness of Ghana’s gold in the international market.

Controversy over 2 taxes


While the government officials claimed to have scrapped three additional taxes—the Emissions Levy, and VAT on Motor Insurance—these taxes were not actually being collected the current government rejected it.

This revelation has sparked debate about transparency in tax policy, with critics arguing that removing non-enforced taxes does not provide any real relief to affected industries or consumers.

Energy sector levies consolidation under review
The government has also announced plans to consolidate several energy sector levies under the Energy Sector Levies Act (ESLA). These include the Energy Debt Recovery Levy, Energy Sector Recovery Levy (Delta Fund), and the Sanitation and Pollution Levy.
The move is aimed at streamlining revenue collection to address energy sector shortfalls and service outstanding debt. However, industry players are concerned about how this consolidation will impact energy costs for businesses and households.

Govt seeks IMF assistance to reforms VAT
Dr. Cassiel Ato Forson who announce these in 2025 Budget Statement and Economic policy in Parliament highlighted ongoing inefficiencies in the VAT regime, citing distortions caused by the combination of VAT and sales tax principles.
He emphasized that businesses currently cannot claim input for the NHIL, GETFund Levy, and the COVID-19 Levy, which has compounded financial strain on households.
To address these inefficiencies, the government has sought technical assistance from the International Monetary Fund (IMF) for VAT reforms, expected to commence in April 2025.
Proposed reforms include abolishing the COVID-19 Levy, reversing the decoupling of GETFund and NHIL from VAT, and adjusting the VAT registration threshold to exempt micro and small businesses from VAT collection.

Economic impact and industry reactions
The introduction and extension of these taxes are expected to have varying impacts across different sectors.
While the scrapping of some levies provides relief to businesses and individuals, the increased Growth and Sustainability Levy, extended VAT on insurance, and import duties may place additional financial pressure on affected industries.
Stakeholders are calling for more consultations to ensure that Ghana’s tax policies strike a balance between revenue generation and economic growth.