Ghana’s 2025 Budget presents optimism with its tax relief measures, but the Institute for Statistical, Social, and Economic Research (ISSER) warns that low GDP growth projections remain a critical concern.
Key Highlights from ISSER’s Post-Budget Review
Optimism Over Tax Reforms – ISSER acknowledges that the budget’s tax relief initiatives and proposed reforms could drive economic benefits if properly implemented.
Concerns Over Slow Growth – Ghana’s GDP growth rate is projected to lag behind the Sub-Saharan African average, raising concerns about poverty reduction and economic expansion.
Revenue Targets Under Scrutiny – The government aims to increase corporate and property taxes by 45%, but ISSER questions whether this is realistic.
Betting Tax Scrapped: A Missed Opportunity?
ISSER opposes the government’s decision to eliminate the betting tax, arguing that its GH₵140 million revenue should be directed toward youth development initiatives.
“We are reintroducing road tolls that generate GH₵72 million but scrapping a betting tax that brings in almost double. This decision lacks economic logic,” noted Prof. Peter Quartey, ISSER’s Director.
What This Means for Businesses and Investors
Tax relief measures could stimulate private sector growth if implemented effectively.
Sluggish GDP growth may signal longer recovery timelines for businesses.
Uncertain revenue projections raise fiscal sustainability concerns for investors.
While the budget presents hope, ISSER urges the government to focus on accelerating economic growth, ensuring revenue targets are met, and making strategic tax policy decisions to sustain development.
