Major Tax and Financial Reforms Signed Into Law


President John Dramani Mahama has signed eight significant bills into law, bringing major reforms to Ghana’s tax policies, financial management, and revenue allocation.

The signing ceremony, held on April 2, 2025, at Jubilee House, marks a new economic direction for the country. Key changes include the abolition of the E-Levy, Betting Tax, and Emissions Tax, alongside amendments to public financial laws.

Breakdown of the 8 Bills and Their Impact:

1. Electronic Transfer Levy (Repeal) Bill, 2025

Abolishes the E-Levy, a tax on mobile money transactions introduced in 2022.
✅ Increases disposable income
✅ Encourages digital transactions
✅ Reduces business transaction costs

2. Emissions Levy (Repeal) Bill, 2025

Removes the tax on carbon emissions from industries and vehicles.
✅ Promotes green energy
✅ Encourages eco-friendly policies
✅ Improves air and water quality

3. Value Added Tax (Amendment) Bill, 2025

Exempts motor vehicle insurance from VAT, lowering costs for drivers.
✅ Reduces insurance costs
✅ Lowers transport fares
✅ Provides financial relief to car owners

4. Income Tax (Amendment) Bill, 2025

Eliminates withholding taxes on lottery winnings, betting, and gold purchases.
✅ Increases earnings for winners
✅ Boosts gold trade transparency
✅ Reduces gold smuggling

5. Petroleum Revenue Management (Amendment) Bill, 2025

Redirects Annual Budget Funding Amount (ABFA) to infrastructure projects under Mahama’s “Big Push” program.
✅ Boosts infrastructure development
✅ Ensures project completion
✅ Strengthens economic growth

6. Public Financial Management (PFM) Amendment Bill, 2025

Introduces new fiscal rules to enhance budget transparency and control debt.
✅ Creates an independent Fiscal Council
✅ Strengthens government spending oversight
✅ Improves financial accountability

7. Earmarked Funds Capping and Realignment (Amendment) Bill, 2025

Removes restrictions on critical funds, ensuring more resources for key sectors.
✅ More funding for Free SHS & GETFund
✅ Increased road construction budget
✅ Enhanced healthcare funding via NHIS

8. Value Added Tax (Amendment) Bill, 2025 (Duplicate Mention)

Reaffirms VAT exemptions for motor vehicle insurance, reducing transport costs.

John Mahama Officially assented to new bills
John Mahama Officially assented to new bills

These reforms aim to improve Ghana’s economic stability while easing financial burdens on citizens.

Source: 3News


Shares: