Finance Minister Dr Cassiel Ato Forson has disclosed that Ghana’s non-oil tax revenue increased in 2025 despite the government’s decision to scrap several taxes, including the Electronic Transfer Levy (E-Levy).

He said the development demonstrates that efficient tax administration and improved compliance are more effective in raising revenue than continuously introducing new taxes.

Presenting the 2026 Mid-Year Budget Review to Parliament on Thursday, July 23, Dr Forson explained that the government’s tax reforms were designed to reduce pressure on households and businesses while improving domestic revenue mobilisation.

“Government collected more taxes in 2025 even after abolishing the nuisance taxes, including the E-Levy,” he stated.

The Finance Minister revealed that non-oil tax revenue rose from 12.6 per cent of Gross Domestic Product (GDP) in 2024 to 13.1 per cent in 2025, representing a 0.5 percentage-point improvement.

He said the government removed several taxes considered burdensome, including the E-Levy, betting tax, COVID-19 Health Recovery Levy, emissions tax and VAT on motor insurance.

Dr Forson further noted that the government implemented major VAT reforms, describing them as the most comprehensive review of the system since 2015, with the aim of removing inefficiencies, reducing distortions and improving compliance.

According to him, the tax relief measures have allowed businesses to maintain more capital for operations, investment and expansion, which will contribute to job creation.

The Finance Minister also highlighted reforms introduced at the country’s ports, including the use of artificial intelligence and digital systems to improve customs operations, prevent revenue losses and strengthen collection.

“Since the introduction of the AI-powered customs reforms, monthly customs revenue has increased by approximately 17%, reflecting stronger compliance, more effective enforcement, and significantly reduced leakages,” he said.

Dr Forson also announced that government has stopped what he described as the improper use of the Tax Refund Account, ensuring that funds meant for legitimate tax refunds are reserved strictly for that purpose.

He attributed the improvement in revenue generation to better implementation of policies, enhanced compliance and more efficient tax administration rather than increased tax rates.

“The lesson here is simple. Better policy, stronger compliance and smarter administration will always deliver more sustainable revenue than higher taxes,” he said.

He added that government’s fiscal approach remains focused on restoring investor confidence, promoting private sector growth, reducing financial pressure on citizens and businesses, and expanding domestic revenue through improved systems instead of introducing additional taxes.