Ghana may lose GH¢6.4 billion in revenue if the COVID-19 and E-Levy taxes are abolished in the 2025 budget, as revealed by KPMG’s pre-budget survey. The survey highlights the necessity of these revenues and suggests leveraging technology in taxation and improving public financial management to enhance fiscal sustainability. It also recommends focusing on sectors that can support a 24-Hour Economy for growth and competitiveness.
A KPMG pre-budget survey indicates that Ghana could forfeit approximately GH¢6.4 billion in revenue if the government decides to eliminate the COVID-19 and E-Levy taxes in the 2025 budget. This warning is outlined in the survey submitted to the Ministry of Finance, emphasizing the importance of these levies for revenue generation.
KPMG highlighted that removing the E-Levy and COVID-19 Levy would likely create a significant revenue shortfall of a minimum of GH¢6.4 billion. The firm advocates for the government to utilize technology for better property rate administration and tax reviews in the digital and e-commerce sectors. Furthermore, it suggests enhancing public financial management systems, addressing procurement loopholes, and reducing inefficiencies in spending to bolster fiscal sustainability.
To ensure the success of Ghana’s 24-Hour Economy, KPMG advises focusing on industries that benefit from continuous operations and increasing consumer demand, such as manufacturing, transport and logistics, healthcare, retail and hospitality, as well as digital services. The perspectives from survey respondents reflect a belief that proposed policy initiatives in the budget could serve as a foundation for economic recovery.
In summary, the KPMG survey underscores the potential GH¢6.4 billion revenue shortfall that would result from eliminating the COVID-19 and E-Levy taxes. It calls for enhanced public financial management and technology integration in taxation, while also recommending a focus on thriving sectors for Ghana’s economy. The insights provided reflect a consensus on the importance of strategic initiatives in the upcoming budget for successful economic recovery.
Original Source: www.ghanaweb.com
