The Chief Executive Officer (CEO) of Dalex Finance, Joe Jackson, has said Ghanaian businesses are still expectant of something from the government despite the scrapping of some taxes to bring relief.
Mr. Jackson has lauded the government for presenting to Parliament, the Repeal Bills to scrap all the taxes it promised to abolish in the 2025 Budget Statement and Economic Policy of the Government.
The scrapping of these taxes, according to the analyst, is something Ghanaians have long been waiting for.
But according to the finance analyst, the simplification and reduction of the Value Added Tax (VAT) which he said can only be executed after a technical review by the International Monetary Fund (IMF) is what would bring relief to businesses.
“But in terms of private business, in terms of what would have the biggest effect, it would be the simplification of VAT. Not just the simplification but the reduction in the effective VAT rate [and] that will only happen after an IMF technical review,” he stated.
Parliament on Wednesday, March 26, 2025, passed a bill to abolish the controversial Electronic Transfer Levy (E-Levy).
The move to abolish the tax has been widely welcomed by many Ghanaians. The bill is yet to be presented to President Mahama for assent.
The E-Levy was introduced in 2022 by the previous NPP administration. It was designed to impose a 1.5% tax on electronic transactions such as mobile money transfers, bank transfers, and online payments.
While others argued that the levy would help generate revenue for infrastructural development, it faced significant opposition from the public, businesses, and political figures who expressed concerns about its impact on digital transactions and the economy.
Since its introduction, there have been protests and public outcry, with critics arguing that it disproportionately affected low-income earners and the section of the population without bank accounts.
But Mr. Jackson has maintained those in the business arena are awaiting the simplification which he says would bring have the real impact on businesses and the public as a whole.
“So, while we happen to have this, a lot of us are also waiting patiently to see ‘when will this review happen, when will the simplification happen’ because that is what will have the maximum effect on the average Ghanaian,” he pointed out.
Mr. Jackson had earlier declared that the removal of the taxes has brought a huge relief to the public which he praised the government for.
Ghanaians will be rejoicing over scrapping of vilified, hated E-levy – Joe Jackson
