The 2025 Pre-Budget Survey in Ghana outlines major business priorities, opposing the E-levy and COVID-19 levy while favoring a 24-Hour Economy Policy. Business leaders express optimism about fiscal reforms but propose alternative revenue strategies. The government is expected to remove the levies as part of a wider economic revitalization strategy with new funding plans for education and women’s development.
Ghana’s 2025 Pre-Budget Survey, conducted by KPMG in collaboration with UNDP, has identified essential priorities for businesses as the government prepares its fiscal plans. The survey included 233 companies from various sectors, revealing that 50% of respondents oppose both the E-levy and the COVID-19 levy. On the other hand, 72% support the initiation of a 24-Hour Economy Policy aimed at fostering economic growth.
Business leaders are optimistic about the upcoming budget, with 80% believing that the 2025 fiscal framework could spur economic recovery. This optimism stems from expected tax relief measures and the potential impact of the 24-Hour Economy initiative. Nevertheless, there are concerns regarding the revenue effects of removing these levies, prompting businesses to propose alternatives like broadening the tax base to include the informal sector, reintroducing road tolls, and privatizing underperforming state-owned companies.
Additionally, companies stressed the necessity of support measures for the success of the 24-Hour Economy Policy. Recommendations include improving security, securing a stable power supply, upgrading transport infrastructure, and providing tax incentives for businesses. These measures are deemed vital for optimizing the initiative’s effectiveness.
In a related announcement, Felix Kwakye Ofosu, the Minister of State for Government Communications, affirmed that the upcoming budget presentation on March 11, 2025, will eliminate the E-Levy and the COVID-19 levy. This initiative is part of a broader 120-day Social Contract that encompasses 26 commitments focused on revitalizing Ghana’s economy.
Other significant proposals expected in the budget include a 10% tax on betting winnings, the introduction of an emissions levy, the establishment of a Women’s Development Bank, and new job creation strategies. Moreover, a ‘No-Academic-Fee’ policy for first-year students at public universities will be implemented, indicating a considerable change in education funding.
The 2025 Pre-Budget Survey has shed light on critical business priorities in Ghana, including a strong opposition to the E-levy and COVID-19 levy, alongside robust support for a 24-Hour Economy Policy. With significant optimism regarding fiscal reforms, businesses have suggested alternative revenue strategies to ensure economic stability. The government’s commitment to removing certain levies reflects a broader initiative aimed at enhancing economic resilience and investment in key sectors such as education and women’s development.
Original Source: www.ghanaweb.com
