Government to remove GH¢7bn in tax exemptions to boost revenue

The government has announced plans to scrap GH¢7 billion in tax exemptions as part of efforts to increase domestic revenue and strengthen fiscal stability. The move is expected to affect various sectors, including import duties, corporate tax breaks, and special waivers granted to businesses.

Presenting the 2025 Budget Statement and Economic Policy to Parliament on March 11, 2025, Finance Minister Dr Cassiel Ato Forson stated that the widespread use of tax exemptions had significantly reduced government revenue, making it necessary to review and eliminate non-essential waivers.

“The government has decided to rationalise tax exemptions, which currently amount to billions of cedis in lost revenue,” Dr Forson told lawmakers. “We are taking decisive steps to remove exemptions that do not provide clear economic benefits.”

He explained that the GH¢7 billion to be recovered will be redirected to fund critical infrastructure projects, education, and healthcare.

He also indicated that the government will tighten tax compliance and broaden the tax net to ensure businesses and individuals contribute fairly to national development.

Dr Forson assured Parliament that the exemption cuts will be implemented gradually, giving affected businesses and organisations time to adjust.

“We are mindful of the impact these adjustments may have on the private sector, so the review process will be transparent and consultative,” he said.

He further noted that legislation would be introduced to regulate future tax exemptions, ensuring that they are granted based on clear economic benefits rather than discretionary policies.