Ghana’s 2025 Pre-Budget Survey: Insights on Business Priorities and Policy Directions

The 2025 Pre-Budget Survey highlights priorities among Ghanaian businesses, advocating for the removal of the E-levy and COVID-19 levy, while supporting a 24-Hour Economy Policy. Business confidence in budget measures is high, though concerns regarding revenue loss from levy removals persist. The government, led by Minister of State Felix Kwakye Ofosu, plans significant fiscal reforms, including a shift in education funding and new tax policies.

The 2025 Pre-Budget Survey, conducted by KPMG in partnership with UNDP, has identified key priorities for Ghanaian businesses as the government prepares its fiscal policies. The survey, which included 233 companies from diverse industries, revealed that half of the respondents advocate for the elimination of both the E-levy and the COVID-19 levy. In contrast, a significant 72% expressed support for the introduction of a 24-Hour Economy Policy aimed at promoting economic growth.

Business leaders exhibited optimism regarding the forthcoming budget, with 80% believing it will facilitate economic recovery. This confidence primarily stems from expectations of tax relief arrangements and the projected success of the 24-Hour Economy initiative. However, concerns persist regarding the potential revenue loss from removing these levies. Companies have recommended broadening the tax base to include the informal sector, reinstating road tolls, and privatizing inefficient state-owned enterprises to address the expected shortfall.

Moreover, companies emphasized the necessity of supportive initiatives to ensure the effective implementation of the 24-Hour Economy Policy. Key suggestions include enhancing security, guaranteeing a stable electricity supply, upgrading transportation infrastructure, and providing tax incentives for businesses.

In a related announcement, Felix Kwakye Ofosu, the Minister of State for Government Communications, revealed that the government plans to abolish both the E-Levy and the COVID-19 levy during the budget presentation scheduled for March 11, 2025. This action is part of the comprehensive 120-day Social Contract that includes 26 commitments aimed at rejuvenating the economy.

Additional significant proposals in the upcoming budget encompass a 10% tax on betting winnings, the implementation of an emissions levy, the establishment of a Women’s Development Bank, and initiatives aimed at job creation. Furthermore, a groundbreaking ‘No-Academic-Fee’ policy for first-year students at public universities will be enacted, indicating a pivotal change in education funding.

The 2025 Pre-Budget Survey highlights the priorities and expectations of Ghanaian businesses as the government prepares for its fiscal strategy. The emphasis on eliminating certain levies and introducing the 24-Hour Economy Policy reflects a strong desire for economic growth. With the government’s commitment to significant reforms, including educational funding and job creation initiatives, the upcoming budget aims to address both business and community needs effectively.

Original Source: www.ghanaweb.com