KPMG Survey: Ghana Risks GH¢6.4 Billion Loss from Tax Scrapping

KPMG’s survey indicates Ghana could lose GH¢6.4 billion in revenue if COVID-19 and E-Levy taxes are scrapped in the 2025 budget. The firm advises technological enhancement in tax administration and emphasizes focusing on key sectors for economic recovery.

According to a pre-budget survey conducted by KPMG, Ghana risks losing approximately GH¢6.4 billion in revenue if the government decides to eliminate the COVID-19 and E-Levy taxes in the 2025 budget. The findings were presented in a report submitted to the Ministry of Finance.

KPMG warned that abolishing these levies could create a significant revenue shortfall of at least GH¢6.4 billion. Moreover, it recommended that the government utilize technology to improve property rate administration and collection, while also revisiting taxation within the digital and e-commerce sectors.

The firm emphasized the importance of strengthening public financial management systems, closing public procurement loopholes, and curtailing unnecessary expenditures to enhance fiscal sustainability. Additionally, for Ghana’s 24-Hour Economy to flourish, focus should be on sectors like manufacturing, transport and logistics, healthcare, retail, hospitality, and digital services, which are well-suited for continuous operations.

Most survey respondents expressed confidence that new policy initiatives proposed in the budget could serve as a foundation for economic recovery. The insights from KPMG reflect a broader need for strategic fiscal planning as Ghana navigates its financial future.

In summary, Ghana may face a loss of GH¢6.4 billion in revenue if the government eliminates the COVID-19 and E-Levy in the upcoming budget, according to KPMG’s pre-budget survey. The report underscores the necessity of employing technology for improved tax administration and the importance of targeting growth sectors for the economy’s recovery. Stakeholder confidence in proposed policy initiatives suggests a potential pathway to revitalizing Ghana’s economy, though fiscal discipline is essential.

Original Source: www.ghanaweb.com