Ghana’s 2025 Pre-Budget Survey, conducted by KPMG and UNDP, indicates that businesses strongly oppose the E-levy and COVID-19 levy, with many supporting a new 24-Hour Economy Policy. While there is optimism regarding the budget’s potential for economic recovery, concerns about revenue implications are prominent. The government plans to abolish these levies and introduce various new policies, including changes in taxation and education funding.
The 2025 Pre-Budget Survey conducted by KPMG in collaboration with UNDP highlights the main priorities of Ghanaian businesses as the government prepares its fiscal plan. A total of 233 companies were surveyed, revealing that 50% oppose the existing E-levy and COVID-19 levy. Conversely, 72% of respondents support the introduction of a 24-Hour Economy Policy aimed at promoting economic growth.
Business leaders express optimism regarding the upcoming budget, with 80% believing it will encourage economic recovery. This optimism stems from anticipated tax relief and the prospective success of the 24-Hour Economy initiative. Nonetheless, concerns about the potential revenue shortfall from eliminating these levies have been raised. To mitigate these issues, businesses recommend broadening the tax base to include the informal sector, reinstating road tolls, and privatizing underperforming state enterprises.
Additionally, companies emphasize the necessity for supportive measures to ensure the successful implementation of the 24-Hour Economy Policy. Recommendations include enhancing security, providing a stable power supply, improving transportation infrastructure, and offering tax incentives for businesses.
On a related note, Felix Kwakye Ofosu, Minister of State for Government Communications, announced the government’s plan to abolish both the E-Levy and COVID-19 levy in the budget presentation set for March 11, 2025. This initiative is part of a broader 120-day Social Contract, which includes 26 commitments aimed at revitalizing the economy.
Other significant proposals in the upcoming budget comprise a 10% tax on betting winnings, the introduction of an emissions levy, establishment of a Women’s Development Bank, and new job creation policies. Furthermore, the government plans to implement a ‘No-Academic-Fee’ policy for first-year students at public universities, representing a notable shift in education funding practices.
In summary, the 2025 Pre-Budget Survey reveals Ghanaian businesses’ primary priorities, such as the abolition of certain levies and the implementation of a 24-Hour Economy Policy. Business optimism regarding the budget’s potential to stimulate economic recovery is contrasted by concerns over revenue implications. Additionally, the government’s forthcoming policy proposals, including taxation changes and educational funding, signify a substantial shift in fiscal policy aimed at economic revitalization.
Original Source: www.ghanaweb.com
