Tax Hikes Feared as NDC Presents Fiscal Update
Eric Amponsah Boateng, Senior Tax Manager at PKF, predicted on JoyNews’ AM Show on July 24, 2025, that the NDC government may introduce new taxes or raise existing rates in the mid-year budget review, potentially burdening Ghanaians amid rising living costs. He urged expanding the tax net to include informal sector operators, noting that Ghana’s 18.5% tax-to-GDP ratio lags behind the sub-Saharan average of 22%, according to JoyNews.
Finance Minister Dr. Cassiel Ato Forson will present the 2025 mid-year budget review to Parliament on July 24, under the Public Financial Management Act, 2016 (Act 921). Eric Afful, Chairman of the Economy and Development Committee, clarified on July 23 that the review, a statement, not a motion, seeks no additional funds beyond the GH¢293 billion appropriation.
The government will not come to the House to ask for additional funds… we are going to stay within the appropriation of GHS293 billion that was programmed to execute the 2025 budget”
The review will assess fiscal performance, revenue mobilization, and IMF program progress, including the GH¢1 fuel levy and E-Levy removal. Despite March 2025 tax cuts like the COVID-19 levy and betting tax, Boateng’s concerns echo Minority warnings of a GH¢200 billion tax target. VAST Ghana advocates maintaining excise taxes on tobacco and alcohol.
Boateng suggested taxing online businesses to broaden the tax base, aligning with Forson’s March 11 budget goal of sustainable revenue without new burdens. The review will also update on infrastructure like the Kumasi airport runway extension and the 24-hour economy policy. Critics, including former Finance Minister Mohammed Amin Adam, question the NDC’s fiscal strategy, citing past economic mismanagement.