Tax Reforms

Having indicated its intention to focus on restoring fiscal sustainability, we expect the new government to introduce certain tax reforms as promised in its manifesto including:

• removal of the Electronic Transfer Levy, COVID-19 Health Recovery Levy, and the Emissions Levy;

• abolishing of VAT on mineral exploration;

• undertaking a comprehensive reform of Ghana’s VAT regime to provide relief for households and businesses; and

• operationalisation of the Independent Tax Appeals Board under the Revenue Administration Act, 2016 (Act 915).

 

Further, the National Petroleum Authority (NPA) has previously indicated its intention to engage the Ministry of Finance (MoF) to remove some taxes on liquefied petroleum gas to make it more affordable and accessible to consumers. If the NPA proceeds with this plan, we expect to see tax reforms in this regard.

 

Programmes and measures in the energy and extractives sectors

The NPA in collaboration with the Bank of Ghana and credit bureaus is proposing to introduce credit ratings in Ghana’s downstream petroleum sector to help businesses manage risks and improve creditworthiness in the oil marketing space.

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The new government is expected to introduce new programmes and measures in the energy and extractive sectors. Key among these are the proposed renewal of efforts to introduce private sector participation in the electricity distribution utility, Electricity Company of Ghana, and the constitution of the Ghana Gold Board under the auspices of the PMMC to be responsible for the sustainable management and marketing of the country's gold resources. Government is also expected to continue the existing programmes, policies and measures for the first quarter of 2025 as indicated in the Mini Budget such as those relating to rural electrification and the petroleum hub. The new government may continue other existing programmes including the Ghana Nuclear Power Programme, Scaling-up Renewable Energy Project, the Solar Lantern Distribution Programme, and the Cylinder Recirculation Model. The government has indicated its intention to review the Gold for Oil policy and the Bank of Ghana’s domestic gold purchase programme.

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Programmes and measures in the infrastructure sector

We expect the new government to introduce new programmes and measures relating to the infrastructure sector. We expect the 2025 Budget to give the first indications of the implementation of the government’s “Big Push” agenda for the infrastructure sector. These include land management reforms for equitable, efficient, and transparent land management; the restructuring of the Ghana Infrastructure Investment Fund and consolidation of the administration of additional infrastructure development funds; and the mobilisation and training of the youth to participate in labour-intensive infrastructure development projects for job creation. The new government has already announced its intention to reinstate the road tolls abolished by the previous administration by implementing a modern and technologically driven system to boost revenue for road maintenance and complete stalled infrastructure projects efficiently, and we anticipate this will also be reflected in the 2025 budget.

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The new government is also expected to continue for the first quarter of 2025, some of the existing programmes as indicated in the Mini Budget such as the Water and Sanitation Initiative, the dredging of the White Volta and the Coastal Protection and Slum Upgrade. 

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The new government has taken step steps to reform the structure of certain ministries. The Ministry of Railway Development (MoRD), previously established to prioritize the development of Ghana’s railway system, has now been incorporated into the Ministry of Transport. Additionally, the Ministry of Works and Housing and the Ministry of Water and Sanitation have been merged to form the new Ministry of Works, Housing, and Water Resources.

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Policies relating to land

The Lands Commission intends to a issue public land policy document which will subsequently be incorporated into a revised national land policy. The policy will serve as a guide for the management of public lands in Ghana and review existing guidelines for regulating the acquisition, allocation or release of public lands to cater for contemporary land management and administration matters.

 

We also expect the new government to among others, commence processes towards the review of the 1999 National Land Policy, and the development of policies for affordable access to land and resources for infrastructure projects.

 

 

Legislative reforms

 

Repeal of the Environmental Protection (Mining in Forest Reserves) Regulations, 2022 (LI 2462)

Amidst civil society and organised labour concerns about the usefulness of the Environmental Protection (Mining in Forest Reserves) Regulations, 2022 (LI 2462) (LI 2462), the government has been pressured to revoke this law. While the pressure has subsided, we expect renewed pressure for a revocation of the instrument following the recent increase in galamsey activities at the mine sites of Ghana’s major mining companies. In its 120-day “social contract” with Ghanaians, the new government has promised to ban all existing and new mining activities in forest reserves. We, therefore, expect that the revocation of LI 2462 will be a high priority on the new government’s agenda for 2025.    

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Passing of the International Transactions and Natural Resource Agreement Bill

After repeated calls by relevant stakeholders including the Supreme Court of Ghana, a bill has now been presented to Parliament to give effect to article 181(5) of the Constitution. The bill is intended to finally bring clarity to international business transactions which will require parliamentary approval including applicable thresholds and processes. The bill also seeks to provide for the approval by Parliament of natural resource agreements pursuant to article 268 of the Constitution.

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Amendment of the Ghana Investment Promotion Centre Act, 2013 (Act 865)

The proposed amendment of the Ghana Investment Promotion Centre Act, 2013 (Act 865) (the GIPC Act) to empower the Ghana Investment Promotion Centre to play a proactive role in attracting and retaining foreign direct investments (FDIs) is yet to be realised. We envisage that the GIPC Act will be amended this year to make Ghana a more competitive and attractive investment destination for FDIs.

 

Enactment of the Rent Bill

The Rent Bill is still pending passage into law. The Rent Bill when enacted will consolidate the law on rent; reform the existing enactments on rent; remove the inherent constraints on housing supply; offer incentives to stimulate private sector investment in the rental housing sector; maintain the protection of low-income and vulnerable tenants from abuse and arbitrary actions and provide for related matters.

 

Construction industry

The Construction Industry Development Authority (CIDA) Bill, the Condominium Bill and the Ghana Housing Authority Bill, are still yet to be passed into law despite previous predictions. We expect these bills to be on the parliamentary calendar this year.

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The CIDA Bill when passed will establish CIDA to regulate the construction industry and is expected to bring sanity and professionalism into the construction industry in light of the escalation of substandard buildings in the country. The Condominium Bill, when passed into law, will regulate shared ownership of common areas which has arisen due to increasing demand for the development of high rise and compact properties and the need to maximise limited land space. On the other hand, the Ghana Housing Authority Bill when enacted will establish the Ghana Housing Authority to serve as a regulator in the housing sector and to plan, develop and manage housing development in Ghana.