Ghana may face a revenue loss of GH¢6.4 billion if it scrapes COVID-19 and E-Levy taxes in its 2025 budget, per KPMG’s pre-budget survey. It emphasizes leveraging technology in tax administration and boosting key sectors for a successful 24-Hour Economy, with optimism for policy initiatives contributing to economic recovery.
Ghana could potentially face a revenue loss of approximately GH¢6.4 billion if it decides to eliminate the COVID-19 Levy and E-Levy in the upcoming 2025 budget, according to a pre-budget survey conducted by KPMG. The findings were presented to the Ministry of Finance, highlighting the significant fiscal implications of any such policy changes.
KPMG noted that the removal of these levies may result in a minimum of GH¢6.4 billion shortfall in revenues. The report emphasized the importance for the government to leverage technology to optimize property rate administration and collection, alongside reviewing taxes regarding digital and e-commerce enterprises. Enhancing public financial management, addressing procurement loopholes, and minimizing wasteful spending are pivotal in achieving fiscal sustainability.
Furthermore, KPMG posits that for the success of Ghana’s 24-Hour Economy, a focus on industries that benefit from continuous operations is essential. Key sectors identified include manufacturing, transport and logistics, healthcare, retail and hospitality, and digital services, which contribute to increased consumer demand and global market competitiveness.
The survey respondents agreed that new policy initiatives outlined in the budget could serve as a foundational strategy for economic recovery, demonstrating a collective optimism towards the administration’s direction.
Overall, these insights underline the critical need for careful planning in fiscal policy as Ghana moves into the 2025 fiscal year.
In summary, Ghana could incur a significant revenue deficit of GH¢6.4 billion if it cancels specific levies in the 2025 budget. KPMG’s survey stresses enhancing fiscal management practices and optimizing tax collection methods. Additionally, focusing on industries conducive to a 24-hour economy is vital for economic recovery. The survey indicates that effective policy initiatives from the administration may underpin recovery efforts, showcasing the importance of strategic planning in the nation’s financial governance.
Original Source: www.ghanaweb.com
