A recent pre-budget survey conducted by KPMG has revealed that the Ghanaian government could face a revenue shortfall of approximately GH¢6.4 billion should the Covid-19 levy and the E-Levy be abolished in the 2025 budget. This report, submitted to the Ministry of Finance, highlights the fiscal impact of removing these taxes and suggests alternative measures to mitigate the loss. According to KPMG, leveraging technology could play a crucial role in bridging this revenue gap. Specifically, the report recommends improving property rate administration and enhancing taxation in the digital and e-commerce sectors. Furthermore, strengthening public financial management systems, addressing inefficiencies in public procurement, and reducing unnecessary government expenditure are highlighted as essential steps toward maintaining fiscal sustainability. The firm emphasizes that these measures will be critical in ensuring that the economy remains stable despite potential tax reforms.
Additionally, KPMG’s findings suggest that Ghana’s proposed 24-hour economy could serve as a key driver of economic growth if implemented strategically. The report notes that for the round-the-clock economic model to be effective, it should focus on sectors that naturally align with continuous operations and global competitiveness. Industries such as manufacturing, transport and logistics, healthcare, retail, hospitality, and digital services are identified as areas where extended working hours could lead to increased productivity and economic expansion. The study also indicates that most respondents believe new policy initiatives in the 2025 budget could form the foundation for the country’s economic recovery. However, it stresses the need for targeted investments and efficient management of resources to maximize the benefits of a 24-hour economy.
Public opinion on the budget’s potential reforms remains divided, with some stakeholders advocating for alternative revenue generation strategies rather than the introduction of new taxes. Previous discussions have seen policymakers and business organizations, such as the Ghana National Chamber of Commerce and Industry (GNCCI), voicing their opposition to additional tax burdens on businesses and individuals. Meanwhile, others argue that innovative tax policies and improved financial management could help sustain economic growth while addressing fiscal challenges. The survey also aligns with recent debates in Ghanaian politics, where some leaders have pledged to eliminate the E-Levy and other unpopular taxes. While these proposals may offer short-term relief to taxpayers, KPMG’s analysis suggests that they could create long-term financial gaps unless alternative revenue streams are effectively implemented. Ultimately, the 2025 budget is expected to play a crucial role in determining the country’s economic trajectory, making it imperative for policymakers to carefully balance revenue mobilization with sustainable development strategies.
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