A pre-budget survey conducted by auditing and accounting firm KPMG has revealed that Ghana stands to lose approximately GH¢6.4 billion in revenue if the government decides to abolish the E-Levy and Covid-19 taxes in the 2025 national budget.
The findings, submitted to the Ministry of Finance, emphasize the potential fiscal gap that could arise should these levies be removed. Respondents in the survey recommended that the government adopt technology-driven initiatives to help mitigate the expected revenue shortfall.
“KPMG notes that abolishing the E-Levy and Covid-19 levy could result in a revenue shortfall of at least GH¢6.4 billion,” the report highlighted.
Leveraging Technology to Improve Revenue Collection
To address the expected revenue gap, KPMG suggested that the government should enhance the use of technology in property rate administration and tax collection. Additionally, it recommended reviewing taxation policies in the digital and e-commerce sectors, strengthening public financial management systems, and closing loopholes in public procurement to minimize financial losses.
“Beyond the revenue measures proposed by respondents, the government should also leverage technology to enhance property rate administration and collection, as well as review taxation within the digital and e-commerce sectors. Additionally, strengthening public financial management systems, closing loopholes in public procurement, and reducing wasteful spending are critical to improving fiscal sustainability,” KPMG stated.
The report also touched on Ghana’s plans to transition into a 24-hour economy. It advised that the government should prioritize industries naturally suited for round-the-clock operations, such as manufacturing, transport and logistics, healthcare, retail, hospitality, and digital services.