Ghana’s 2025 budget proposals have sparked debate over the planned removal of the betting tax, with economist and University of Ghana Professor, Godfred Alufar Bokpin, calling for a critical reassessment.
While acknowledging that some tax eliminations could stimulate economic growth, Professor Bokpin warns of potential behavioural and fiscal implications linked to scrapping the betting tax, saying: “I anticipate some revisions to the tax regime, particularly the removal of the e-levy and COVID-19 levy.
“However, the betting tax requires further assessment due to its behavioural impact.”
A recent KPMG analysis estimates that eliminating the e-levy and betting tax could result in a revenue shortfall of GHS6.4bn (US$520m), with this deficit raising concerns over how the government plans to offset the loss while attempting to reset the economy.
Professor Bokpin suggests that improving Value Added Tax (VAT) efficiency could provide a viable solution to bridge the gap: “If we can enhance VAT efficiency by just 15%, it will generate more than enough revenue to cover these losses.”
He further argues that the removal of certain taxes should be seen not as a loss, but as a measure to boost household consumption and drive economic activity.
The proposed tax removals, including the e-levy, betting tax and COVID-19 levy, align with campaign promises made by President John Dramani Mahama, signalling a shift in the administration’s fiscal approach.
As his government deliberates these policies, policymakers have been urged to weigh the broader economic implications to ensure a balanced strategy that fosters growth while maintaining essential revenue streams.
