Ghana’s Government Abolishes Covid-Era ‘Nuisance’ Taxes

Ghana’s new government has decided to cancel several Covid-era taxes linked to IMF financing, emphasizing the economic burden they placed on citizens. Notably, the government is abolishing a one-percent levy on mobile money transfers and a value-added tax on motor vehicle insurance, as stated by Finance Minister Cassiel Ato Forson in the 2025 budget presentation.

On Tuesday, Ghana’s new government declared the elimination of several taxes related to the COVID-19 pandemic that were introduced to facilitate financing from the International Monetary Fund (IMF). This decision reflects the administration’s commitment to addressing the economic difficulties faced by the populace. Among the taxes being repealed are five specific levies, described as “nuisance taxes” by Finance Minister Cassiel Ato Forson during the presentation of the 2025 budget. Noteworthy among these are a one-percent levy on mobile money transfers and a value-added tax imposed on motor vehicle insurance.

The scrapping of these taxes signifies the Ghanaian government’s aim to alleviate financial pressures on citizens in the wake of the pandemic. By removing these taxes, particularly those perceived as nuisances, the administration hopes to foster economic recovery and better support the populace.

Original Source: www.djournal.com