Professional services firm, Deloitte has said that the theme running through this year’s budget statement is the need to strike a delicate balance between macroeconomic stability and economic growth.
It indicated that a key component of the government’s approach to achieving the desired macroeconomic stability is revenue mobilisation.
This notwithstanding, Deloitte said, the move by government to deliver on its promise to scrap certain nuisance taxes (e-levy, betting tax, emission levy ) presents notable risk to its ability to achieve the
set revenue target due to the revenue losses that will result from scrapping these tax handles.
“Whilst the revenue-enhancing measures proposed to cover the potential shortfalls from the taxes to be scrapped are commendable, we recommend for extensive stakeholder engagement with the businesses that will be impacted by these measures to ensure the government obtains their buy-in and commitment ahead of implementation,” Deloitte said in its analysis of the 2025 budget statement.
For instance, it added, analysts have begun to hint that the upward review of the growth and sustainability levy for mining companies, if not properly managed, can constrict growth in the sector.
“We have also noted government’s plans to reintroduce road tolls with a tech-driven toll administration system to drive collection efficiency. Whilst the proposal to introduce technology to improve efficiency is commendable, we recommend for the reintroduction of the road tolls to be guided by a comprehensive cost-benefit analysis of same to ensure the revenue to be generated from the tolls will be worth the time and resources to be invested in administering same.
“Lastly, beyond the new measures proposed, we recommend for government to also prioritize the urgent need to expand the tax net to cover the informal sector as the sector holds significant untapped revenue potential. In this regard, we believe the use of technology, tax education and awareness creation and reforms to simplify compliance will be key for achieving this objective,” it said.
Deloitte also said that they are waiting for specific details on the 24-Hour economy policy idea by the Mahama administration.
Professional services firm, Deloitte has said that the theme running through this year’s budget statement is the need to strike a delicate balance between macroeconomic stability and economic growth.
It indicated that a key component of the government’s approach to achieving the desired macroeconomic stability is revenue mobilisation.
This notwithstanding, Deloitte said, the move by government to deliver on its promise to scrap certain nuisance taxes (e-levy, betting tax, emission levy ) presents notable risk to its ability to achieve the
set revenue target due to the revenue losses that will result from scrapping these tax handles.
“Whilst the revenue-enhancing measures proposed to cover the potential shortfalls from the taxes to be scrapped are commendable, we recommend for extensive stakeholder engagement with the businesses that will be impacted by these measures to ensure the government obtains their buy-in and commitment ahead of implementation,” Deloitte said in its analysis of the 2025 budget statement.
For instance, it added, analysts have begun to hint that the upward review of the growth and sustainability levy for mining companies, if not properly managed, can constrict growth in the sector.
“We have also noted government’s plans to reintroduce road tolls with a tech-driven toll administration system to drive collection efficiency. Whilst the proposal to introduce technology to improve efficiency is commendable, we recommend for the reintroduction of the road tolls to be guided by a comprehensive cost-benefit analysis of same to ensure the revenue to be generated from the tolls will be worth the time and resources to be invested in administering same.
“Lastly, beyond the new measures proposed, we recommend for government to also prioritize the urgent need to expand the tax net to cover the informal sector as the sector holds significant untapped revenue potential. In this regard, we believe the use of technology, tax education and awareness creation and reforms to simplify compliance will be key for achieving this objective,” it said.
Deloitte also said that they are waiting for specific details on the 24-Hour economy policy idea by the Mahama administration.
The Minister for Finance, Dr Cassiel Ato Forson, had stated that government’s proposed 24-hour economy policy will be formally presented to Parliament for approval.
He announced this on Tuesday, 11th March, during the presentation of the 2025 Budget Statement and economic policy to Parliament.
The policy, a key initiative of the Mahama-led National Democratic Congress (NDC) government, aims to boost economic productivity by encouraging businesses to operate around the clock.
Dr Forson noted that the 24-hour economy has the potential to create jobs and foster sustainable economic growth.
“The Mahama-led NDC government is committed to the pursuit of the 24-hour economy policy,” he stated.
But in its analysis of the 2024 Budget and Economic Statement, Deloitte said “We await specific details on the 24-Hour economy, using government procurement to spur local growth and the ‘Big Push’ strategic infrastructural development programme, which aims to allocate US$10 billion to fund infrastructural development. Last is the all-important matter of Ghana’s current debt status and its impact on our overall development.
“Ghana already has the necessary legal framework for which we look forward to seeing tightening of fiscal responsibility rules to ensure debt sustainability. The current debt levels within the energy sector, especially in electricity generation and distribution, need to be resolved with the proposed comprehensive and concerted push.
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