To boost domestic income and improve fiscal stability, the government has declared plans to eliminate GH¢7 billion in tax exemptions. The change is anticipated to have an impact on a number of areas, including corporate tax advantages, import taxes, and business-specific waivers.
According to Finance Minister Dr. Cassiel Ato Forson, who presented the 2025 Budget Statement and Economic Policy to Parliament on March 11, 2025, the extensive use of tax exemptions has drastically decreased government revenue, necessitating the review and removal of non-essential waivers.
Dr. Forson informed parliamentarians that the government had made the decision to rationalize tax exemptions, which now result in billions of cedis in lost income. “We are acting swiftly to eliminate exemptions that don’t offer observable financial advantages.”
He clarified that the GH¢7 billion that needs to be recovered will be used to finance important healthcare, education, and infrastructure initiatives.
He added that in order to guarantee that both individuals and corporations make equitable contributions to the advancement of the country, the government would increase tax compliance and expand the tax base.
Parliament was reassured by Dr. Forson that the exemption reductions will be applied gradually, allowing impacted companies and organizations time to adapt.
“The review process will be transparent and consultative, as we are aware of the potential impact these changes may have on the private sector,” he stated.
He said that laws would be introduced to control future tax exemptions, making sure that they are given out on the basis of definite economic advantages rather than arbitrary regulations.
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