The 2025 Pre-Budget Survey by KPMG and UNDP reveals key business priorities in Ghana. It indicates significant support for abolishing the E-levy and COVID-19 levy, alongside backing the 24-Hour Economy Policy. Optimism abounds among business leaders regarding the budget’s potential to foster recovery, but concerns about revenue implications persist. The government will introduce various reforms, including new taxes and educational funding changes, in its upcoming budget presentation.
The 2025 Pre-Budget Survey conducted by KPMG in collaboration with UNDP has shed light on the priorities of Ghanaian businesses as the government prepares its fiscal plans. The survey, which included responses from 233 companies across various sectors, revealed that 50% of participants opposed both the E-levy and the COVID-19 levy. Conversely, a strong majority of 72% expressed support for implementing a 24-Hour Economy Policy to enhance economic growth.
Business leaders exhibit strong optimism regarding the budget, with 80% believing that the 2025 fiscal framework will enhance economic recovery. This optimism is largely attributed to the expected tax relief measures and the possible success of the 24-Hour Economy initiative. Nonetheless, concerns regarding the revenue impact of scrapping the levies persist, prompting businesses to propose alternative approaches such as broadening the tax base to include the informal sector, reinstating road tolls, and privatizing underperforming state-owned enterprises.
In addition, companies have emphasized the need for supportive measures to facilitate the success of the 24-Hour Economy Policy. Recommendations include enhancing security, ensuring consistent power supply, improving transport infrastructure, and providing tax incentives for businesses.
In a related announcement, Felix Kwakye Ofosu, Minister of State for Government Communications, confirmed the government’s intent to eliminate the E-Levy and COVID-19 levy in the upcoming budget presentation on March 11, 2025. This decision aligns with the broader 120-day Social Contract, which outlines 26 commitments aimed at rejuvenating the country’s economy.
The forthcoming budget also introduces several notable proposals, including a 10% tax on betting winnings, an emissions levy, the establishment of a Women’s Development Bank, and new job creation initiatives. Furthermore, the government plans to launch a ‘No-Academic-Fee’ policy for first-year students at public universities, representing a significant transformation in education funding.
The 2025 Pre-Budget Survey indicates a strong desire among Ghanaian businesses for the removal of certain levies and the promotion of a 24-Hour Economy Policy to stimulate growth. Business leaders express optimism towards the budget, emphasizing the need for supportive measures to ensure successful implementation. The government’s strategic commitments, including the removal of levies and innovative fiscal measures, signal a commitment to revitalizing the economy and addressing public concerns.
Original Source: www.ghanaweb.com
