KPMG’s pre-budget survey projects that Ghana could lose GH¢6.4 billion in revenue if the government abolishes the COVID-19 and E-Levy taxes in the 2025 budget. The report emphasizes the need for enhanced tax administration, strengthened financial management systems, and targeted economic sectors to improve fiscal sustainability and support recovery efforts.
Ghana may incur a revenue loss of approximately GH¢6.4 billion if the government decides to eliminate the COVID-19 and E-Levy taxes in the forthcoming 2025 budget. This forecast is derived from a pre-budget survey conducted by the auditing and accounting firm KPMG, presented to the Ministry of Finance. The findings suggest that such a cancellation would lead to a significant fiscal shortfall.
KPMG highlighted that the removal of these levies could adversely affect government revenue, noting that, “KPMG notes that abolishing the E-Levy and COVID-19 Levy could result in a revenue shortfall of at least GH¢6.4 billion.” Additionally, it emphasized the importance of adopting technological advancements to enhance the administration and collection of property rates, along with reviewing taxation frameworks in the digital and e-commerce domains.
The report further advocates for the enhancement of public financial management systems, the closure of loopholes in public procurement, and the reduction of unnecessary expenditures as vital measures to bolster fiscal sustainability. Furthermore, it outlined the sectors essential for the success of Ghana’s proposed 24-Hour Economy, including manufacturing, transport, logistics, healthcare, retail, hospitality, and digital services.
Survey participants expressed optimism regarding the new administrative policy initiatives included in the budget, believing they could serve as a foundation for economic recovery.
In conclusion, KPMG’s survey indicates a potential revenue shortfall of GH¢6.4 billion for Ghana if the E-Levy and COVID-19 taxes are eliminated in the 2025 budget. It underscores the necessity of modernizing tax collection systems and leveraging specific sectors to ensure economic resilience. The feedback from participants indicates a positive outlook towards administrative changes aimed at economic recovery.
Original Source: www.ghanaweb.com
