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Economist Professor Godfred Bokpin is anticipating a rise in the country’s Value Added Tax (VAT) to as much as 18% or slightly lower in the 2025 budget, as the government considers scrapping certain taxes.

The expected removal of the E-Levy, COVID-19 levy, and betting tax has raised concerns about how the government intends to bridge the resulting revenue gap.

Speaking in an interview with Citi Business News, Professor Bokpin suggested that the government may extend VAT to cover financial services as part of efforts to offset the expected shortfall. He believes the government will also likely restructure the VAT system by merging the standard levies with the standard VAT rate. “One thing I am expecting the NDC to do, which I think they will, is to merge the standard levies with the standard VAT rate. We are talking about levies of almost 6% while the standard VAT rate is 15%, so I think they should merge it and peg it at 18% or below,” he explained.

Professor Bokpin cautioned that any VAT rate exceeding 18% could be counterproductive, as it would negatively impact productivity and affect low-income earners.

He stressed that the upcoming budget, the first for the Mahama-led administration, must consider reforms that meet the expectations of both the private and public sectors.

“There is a lot for them to consider in this budget, and probably the reason why the stakes are high. The private sector is expecting some reforms, the public sector is expecting some reforms in terms of service delivery, and more importantly, procurement measures and ensuring value for money in our public procurement processes will also be important,” he noted. As the new administration looks to “reset” the economy, President Mahama has pledged to scrap certain taxes while promising to cut wasteful spending and enforce fiscal discipline.

Speaker of Parliament, Alban Bagbin, has announced the launch of an investigation into a petition against a Member of Parliament (MP) over alleged involvement in illegal mining, known as “galamsey.”

Speaking at a conference on Wednesday, February 26, where MPs and stakeholders finalized a strategy for responsible small-scale mining, Bagbin warned that Parliament would not shield any lawmaker found complicit in destructive mining activities.

“Let me be unequivocal in stating that Parliament will not tolerate any MP, regardless of position, who is found to be complicit in destructive mining activities,” he stated.

Revealing the ongoing probe, he added, “There’s a petition before me concerning an MP, and I have initiated an investigation. The member himself has appeared before me on that. We are not going to countenance it at all.”Bagbin also underscored the need for lawmakers to uphold accountability and integrity, stating, “As lawmakers, we must lead by example. Any MP caught engaging in or facilitating this type of existential threat to our lives will face the full rigours of the law—and I mean what I say.

“We cannot preach accountability and integrity to the nation while turning a blind eye to misconduct within our ranks.”

Cement prices across Ghana are poised for a sharp increase, with retailers planning to add approximately GHC 9 per bag starting Thursday, February 27th. Some retailers have already implemented the new rates. Samuel Azu, a cement retailer, confirmed the impending price adjustment, “We have not yet increased the price, but this will take effect starting Thursday. From then on, any customer purchasing a bag of cement will need to pay GHC 120.00.

“This price hike is essential because, without it, we won’t be able to restock. If you don’t have that amount, you won’t be able to buy cement in Tema or anywhere else in the country. The factories have explained that the government has raised port tariffs,” Azu explained.

Azu elaborated on the dependency on imported materials, stating “Since most materials used in cement production are imported, any increase in costs from the source directly impacts the final price.” Another retailer, Bismark Owusu Tetteh, expressed frustration over the frequent price fluctuations and emphasized the need for stricter regulatory enforcement.

Meanwhile, the Ghana Chamber of Construction Industry (GhCCI) has urged the government to intervene and stabilize the situation before it worsens. The Chamber’s CEO, Emmanuel Cherry, stressed the government’s role in addressing the issue.

“The best person to assist us is the government, as they are the ones with the power. The mandate lies with them. We can only talk or advise, but it is their decision to act or not.”

Cement prices were a contentious issue last year, sparking a standoff between the Cement Manufacturers Association of Ghana and former Minister of Trade and Industry, K.T. Hammond, over a Legislative Instrument (LI) aimed at regulating prices. The initiative introduced by the former minister received mixed reactions from stakeholders in the supply chain.

As the year progresses, price hikes continue, with some retailers citing rising port tariffs as the primary cause.

Chairman of the Trades Union Congress (TUC), Bernard Owusu, has highlighted key issues the union expects President John Dramani Mahama to address in his upcoming State of the Nation Address on Thursday, February 27.

In an exclusive interview on Channel One Newsroom, Owusu called for a clear explanation of the government’s “resetting agenda,” urging the president to provide specific details and actionable measures.

“We need clarity on what the government means by resetting Ghana and the concrete steps it plans to take,” he stated. He also stressed the urgent need for policies to tackle the rising cost of living and high unemployment rates, emphasizing that Ghanaians expect a well-defined plan to address these pressing challenges. Additionally, the TUC hopes to hear the government’s strategy for fostering national unity and reducing extreme partisanship.

On the issue of wages, Owusu called for a firm commitment to addressing wage disparities and improving overall pay conditions for workers.

The TUC remains hopeful that the president’s address will provide clear, actionable solutions to these concerns.

“There should be clarity on what the government means by resetting Ghana with specific details and measures. The government outlined measures to address the rising cost of living and unemployment rate. And also, we are looking forward to hearing the government put in measures to unify the country, moving away from this extreme partisanship towards what we call a new era of unity and consensus. “The wage situation in the country, a commitment to addressing the wage situation in the country and also adopting a living wage to replace the current minimum wage and to address pay inequalities, efforts to increase pension coverage, improve retirees’ income and implement pension unification, particularly for the informal economy,” he said

The latest data from the Ghana Statistical Service reveals that the country’s total exports in 2024 reached GH₵294.9 billion, surpassing imports of GH₵250.2 billion. This resulted in a trade surplus of GH₵44.7 billion, a significant increase compared to the previous year.

Gold was the leading export commodity, accounting for 55.3% of total export revenue, followed by petroleum and oils, which made up 17.8%. Cocoa and cocoa products contributed 8.4% to total exports.

The report also highlights a shift in trading patterns, with exports to African countries nearly doubling compared to imports, reinforcing Ghana’s role in intra-African trade under the African Continental Free Trade Area (AfCFTA). In the fourth quarter of 2024, exports totaled GH₵92.9 billion, while imports amounted to GH₵72.4 billion, resulting in a trade surplus of GH₵20.5 billion. This marks a substantial rise from the GH₵6.1 billion surplus recorded in Q4 2023.

Gold exports in this quarter were valued at GH₵49.8 billion, representing 53.6% of total export earnings. Crude petroleum, cocoa, and other cocoa products together accounted for 26.4% of exports. Imports remained stable, with mineral fuels and machinery being the top imported goods.

The Trades Union Congress (TUC) has expressed dissatisfaction over the 10 percent wage hike for public sector workers, maintaining its calls for a 30 percent increase.

The adjustment which marks the second in less than a year is expected to take effect on March 1, 2025.

Speaking during an interview on the Channel One Newsroom, Chairman of the TUC, Bernard Owusu said the TUC accepted the new wage adjustment due to a pending negotiation with the government in April this year.

“Nobody is okay with whatever the government gave to us. We accepted it on condition that we will be going for another negotiation around April and once that is done, we can then add more to what we have already acquired by having this negotiation with government.

“So, nobody is happy about that because we could have gotten more but this is what the government is saying that yes we can give you ten percent because of the conditions that we came to meet.”

President John Dramani Mahama will deliver the State of the Nation Address today, Thursday, February 27.

The highly anticipated address is expected to outline his administration’s key policies, economic plans, and governance priorities.

Ghanaians are looking forward to his vision for addressing pressing issues such as economic stability, job creation, infrastructure development, and national unity.

Stakeholders, including the Trades Union Congress (TUC) and business leaders, have already set expectations for the speech, calling for concrete measures to tackle the rising cost of living, unemployment, and wage disparities. Mahama’s address will also serve as an opportunity to provide clarity on the government’s “resetting agenda” and its approach to revitalizing key sectors of the economy.

The speech, to be delivered before Parliament, is expected to draw reactions from both the political and business communities as the country navigates critical economic and social challenges.

Shamima Muslim, Deputy Presidential Spokesperson, has asserted that the National Democratic Congress (NDC) is a stronger representation of Ghanaians compared to the New Patriotic Party (NPP). Thursday, February 27, she emphasized the key differences between the two major political parties, arguing that the NDC has shown greater tolerance for criticism and a deeper commitment to addressing the concerns of ordinary citizens.

“Having experienced both the NPP and NDC in power and opposition, I am of the considered opinion that on the issues we held them accountable for, the NDC is a better representation of the people than the NPP. And I have come to that decision based on experience—NDC is more tolerant to criticisms,” she stated.

Her remarks reflect the sentiment among many Ghanaians who voted for change in the December 7, 2024, elections, which saw the NDC, led by John Dramani Mahama, secure a decisive victory over the NPP.

Mahama’s return to power was largely driven by public dissatisfaction with economic hardships under the NPP administration, including rising inflation, a weakening currency, high unemployment rates, and concerns over corruption.

The NDC’s campaign, focused on economic recovery, job creation, and strengthening democratic institutions, resonated strongly with voters—particularly young people and first-time voters frustrated with the country’s economic trajectory.