The Minority has criticized government’s 2025 Fiscal Policy, raising concern over key tax reforms introduced in the 2025 budget.
Addressing the media after the presentation of the 2025 Budget Statement and Economic Policy, Karaga MP and former Finance Minister, Dr. Amin Adam, accused the government of deceiving Ghanaians by announcing the abolition of VAT on motor insurance and betting tax.
He argued that these taxes were never implemented under the previous NPP administration, making their so-called removal misleading.
“Betting tax that they claim to have abolished, we never collected it. It was never implemented. So, telling Ghanaians that you have removed something that never existed is pure deception,” he stated.
Regarding VAT on motor insurance, the Minority contended that the government is attempting to outsmart the public by reintroducing VAT on non-life insurance while exempting vehicle motor insurance.
“The Minister announced that VAT on motor insurance has been abolished.
But we were already not collecting VAT on motor insurance. Instead, what has happened is the reintroduction of VAT on non-life insurance, except for vehicle motor insurance. Given that insurance penetration in Ghana is just 1.1%, we are shocked that the Minister would reintroduce this tax,” Dr. Amin Adam added.
The passage of the Income Tax Act, 2023 (Act 1094), a 10% withholding tax on betting winnings was introduced.
The tax took effect in July 2024 under the previous administration as part of efforts to curb gambling and increase government revenue.
However, it was met with widespread discontent among Ghanaian bettors, who viewed it as unfair.
Many young people urged President Mahama before the 2024 elections to scrap the tax, and the NDC’s promise to do so became a key factor in mobilizing youth support for the party.
