FACT-CHECK: Did the Finance Minister introduce five new taxes in the 2025 budget?

Claim: Finance Minister introduced five new taxes in the 2025 budget

Source: Dr Gideon Boako, Member of Parliament for Tano North

Verdicts: Misleading

Researched by Samuel Nii Adjetey 

The Member of Parliament for Tano North, Dr Gideon Boako, has claimed that the Finance Minister, Dr Cassiel Ato Forson, introduced five new taxes while presenting the 2025 budget to Parliament on Tuesday, March 11, 2025. 

Speaking on Peace FM’s Kokrokoo morning show on Wednesday, March 12, 2025, Dr Boako argued that while three taxes were removed, new ones were quietly introduced through extensions and adjustments of existing levies. 

“But one thing that is disturbing is that, while eliminating three taxes, he (Ato Forson) has introduced four or by extension five new taxes. You wouldn’t know because of how he presented it.

“The Growth and Sustainability Levy was 1%, Ato Forson says he’s raising it up to 3%. Of course, it’ll contribute to Ghana’s revenue, so I will not be here and say it’s bad. Ato Forson says he would extend the sunset clause to 2028.  Once you increase the duration of a tax, it’s an imposition of tax for that period of extension. The Growth and Sustainability tax was introduced by Ken Ofori Atta. It was ending by 2025, but Ato Forson says he’ll extend it to 2028. 

“He also made mention of the Special Import Levy. He’s charging tax on non-life insurance. What makes it a tax is that during President Akufo-Addo’s tenure, he exempted all non-life insurance from VAT. Ato Forson says he’s removing the exemption. Now, Ghanaians will pay tax on non-life insurance. So if you own a house and you insure it, you’ll pay. As well as any company or asset. When you add the Road Toll to it, it means he has introduced five taxes and removed three,” Dr  Boako said. 

This fact-check seeks to verify whether the budget introduced five new taxes.

Fact-check

The first two new taxes the MP alludes to are both related to the Growth and Sustainability Levy Act. So, whiles Gideon Boako suggests that increasing the levy for mining companies and extending the sunset clause are two new taxes, these two are from the same tax handle, and therefore cannot be referred to as two separate new taxes because of proposed amendments.

The Growth and Sustainability Levy Act, 2023 (Act 1095) imposes levies on three categories of businesses with varying applicable percentages. 

However, collection of the levy in respect of all three categories was to end in 2025 as captured in Clause 4 of the Act which reads: “The Levy is payable in respect of profits before tax or production for the 2023, 2024 and 2025 years of assessment.”

Claim 1

“The Growth and Sustainability Levy was 1%. Ato Forson says he’s raising it up to 3%. Of course, it will contribute to Ghana’s revenue. So I’m not going to sit here and say it’s bad.”

Fact-check

In Paragraph 157 of the 2025 budget statement, the Finance Minister said: “Mr. Speaker, whereas global gold prices have seen some significant increase in recent times, Ghana has not been able to take full advantage of this development.

“Consequently, we are proposing to increase the Growth & Sustainability Levy from 1% on the gross production of mining companies to 3% to enable the nation to have its fair share of the windfall from increase in gold prices.”

Although the Finance Minister proposed an increase in the Growth and Sustainability Levy for mining companies, he did not introduce it as a new tax.

Verdict

Therefore, the claim is rated as misleading.

Claim 2 

“Ato Forson says he would extend the Sunset Clause to 2028. Once you increase the duration of a tax, it’s the imposition of tax for that period of extension. The Growth and Sustainability Tax was introduced by Ken Ofori-Atta. It was ending by 2025, but Ato Forson says he’ll extend it to 2028.”

Fact-check

On the sunset clause, the Minister said in paragraph 157: “We also propose to extend the sunset clause to 2028.”

But does the extension of a tax duration mean introduction of a new tax?

GhanaFact spoke to Juliet Ahiagbe, a tax analyst and founder of CertiRight Consult Limited, who said; “If the Growth & Sustainability Levy Act, 2023 is amended by a Parliamentary approval before the end of 2025, then the current tax statute will not have expired and therefore the extension i.e the amendment cannot be said to be a new tax.” 

From the above, the proposed extension of the sunset clause in the Growth and Sustainability Levy does not amount to the introduction of a new tax. 

Verdict

Therefore, the claim is rated as misleading.

Claim 3

“He also made mention of the Special Import Levy,” Dr Boako said.  

Fact-check

The minister in Paragraph 158 of the budget statement said: “We will also propose to extend the sunset clause of the Special Import Levy to 2028.”

Again, based on the earlier explanation that the extension of the period of a tax does not mean its introduction as a new tax, a proposal to extend the sunset clause of the Special Import Levy does not amount to the introduction of a new tax.

What is the Special Import levy?

The Special Import Levy is a 2% tax on the cost, insurance, and freight (CIF) value of imported goods (excluding items like agricultural machinery, educational materials, and goods for diplomatic missions) introduced in 2013 under Act 861 to generate additional revenue for the government. 

It was originally intended to end in 2015 but has since been extended multiple times through amendments in 2014, 2017, and most recently in 2025. The latest amendment has extended the levy’s implementation until 2028. Amending an existing tax does not amount to introducing a new tax.

Verdict

The claim is rated misleading.

Claim 4

“He’s charging tax on non-life insurance. What makes it a tax is that during President Akufo-Addo’s tenure, he exempted all non-life insurance from VAT. Now, Ghanaians will pay tax on non-life insurance. So, if you have a house and you insure it, you’ll pay. As well as any company or asset.”

Fact-check

Our search in the budget statement showed that the Finance Minister announced the removal of an existing VAT exemption on non-life insurance, with the exception of motor insurance policies.

“Mr. Speaker, to improve revenue mobilisation, the implementation of the following existing revenue measures will be strengthened in 2025: … iii. elimination of VAT exemption on Non-Life Insurance excluding motor policy.”

This means that non-life insurance products (other than motor insurance) will now be subject to VAT, which previously did not apply due to the exemption. However, this does not mean the introduction of a new tax. It is rather a policy shift to apply an existing tax (VAT) more broadly by removing an earlier exemption.

The Finance Minister from the above has not introduced a new tax on non-life insurance.

Verdict

Therefore, the claim is rated misleading.

Claim 5

“…When you add the Road Toll to it, it means he has introduced five taxes and removed three.”

Fact-check

The Finance Minister in Paragraph 161 of the budget statement announced that the government will work with stakeholders to reintroduce the road toll that was cancelled in 2022. 

“Accordingly, government will work with stakeholders, including the private sector, to roll out a technology-driven solution to re-introduce road tolls in 2025 as part of the Big Push Programme”, he said.

From the above, while it is true that the Finance Minister announced a re-introduction of the road tolls, it was not introduced as a new tax, as Dr. Boako claimed. 

Verdict

Therefore, the Tano North MP’s claim about reintroduction of road tolls being a new tax is misleading.