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Scrapping E-levy, COVID-19 tax could cost Ghana GHS 6.4bn in revenue

 Removing the E-Levy and COVID-19 tax is projected to result in a GHS 6.4 billion revenue loss in 2025 alone. The ambitious proposal by the President-elect, John Dramani Mahama to have these tax lines scrapped has sparked concerns about its feasibility, particularly under Ghana’s ongoing IMF-supported programme. The cancellation of these two tax handles as announced by the incoming National Democratic Congress (NDC) government could create a significant revenue shortfall in Ghana’s budget next year. This development poses serious threats to fiscal sustainability as the levies are projected to peak in 2025 to stabilize government finances amidst economic pressures. Government estimates show that E-Levy is expected to generate GHS 2.4 billion in 2025, an increase from GHS 2.1 billion budgeted for this year. Similarly, the COVID-19 Levy is projected to bring in GHS 3.97 billion next year, up from GHS 3.1 billion in 2024. Based on these calculations, the two tax streams are anticipated...