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.”
Food Research Scientists at the Department of Food Science and Technology of the Kwame Nkrumah University of Science and Technology (KNUST) have detected a harmful banned substance in some tomato pastes sold on the Ghanaian market. The substance, Erythrosine, also known as Red Dye No. 3, is used as a colorant in various foods, including toffees, candies, and drinks. It may be labelled and appear on these products, as “Number 3.” However, the Ghana Food and Drugs Authority (FDA) does not permit the substance to be used in the production of tomato paste. This is because Erythrosine has been found to cause various health conditions and is not allowed in tomato paste production. Starch is also prohibited in tomato paste formulations in Ghana.
However, a study by food scientists from the KNUST on tomato paste sold in Ghana found traces of both starch and erythrosine in some samples. Tomato concentrate, which can be classified as either tomato paste or tomato mix, has become a convenient food item commonly used in Ghanaian homes, fast food outlets, and restaurants. It offers a relatively cheap and quick alternative to fresh tomatoes, especially when tomatoes are out of season. Over the years, concerns have been raised over the safety of tomato concentrate brands on the Ghanaian market.
The study, conducted in Kumasi and Accra, aimed to assess the quality of tomato concentrates, which are being sold on the market.
Eight different brand samples that conformed to standard labelling requirements were selected.
The researchers found that all the samples had a color range from red to dark red, a paste-like appearance, and the characteristic taste of tomato concentrate, conforming to standard physical requirements. According to production standards, tomato paste should contain at least 24 per cent natural tomato content. However, the total natural tomato content in some of the sampled brands fell outside this recommended range.
Alarmingly, erythrosine was detected in two samples, even though it was not indicated on the labels.
The study, published in the International Journal of Food Science, also found starch content ranging from 1g/100g to 24g/100g.
In January, the U.S. Food and Drug Administration (USFDA) completely banned erythrosine from food products due to its potential health risks and has given manufacturers two years to remove it from shelves and eliminate its use entirely.
The research, led by Dr. Abena Boakye of the Department of Food Science and Technology, of the university urged the Ghana FDA not to focus only on removing erythrosine from tomato products, but also extend its regulations to include the removal of the substance from confectioneries, candies, drinks, and other food products containing this harmful dye. She said the findings should fuel further research and inform policymakers on the necessary steps to ensure the safety of food products available to consumers.
The researchers also recommended that the findings be used to inform stakeholders and guide necessary steps to provide safe tomato concentrates and other food products for consumers on the market.
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.
Israel says it is indefinitely delaying the release of more than 600 Palestinian prisoners, in another potentially major setback in the ceasefire process.
Benjamin Netanyahu said the release was now going to be delayed until the next handover of hostages by Hamas was guaranteed – and without what the Israeli prime minister called the degrading ceremonies Hamas has put on each week. Only one more handover – of the bodies of four hostages who died in captivity – is due to take place in the first phase of the ceasefire deal, which is due to end on 1 March.
No arrangements for the release of other living hostages, due to take place in the second phase, have yet been made.
Delegations from Israel and Hamas were due to negotiate the exact terms of the second phase while the first was ongoing – but have yet to meet. Mediators will be working overtime to get the deal back on track and avert a possible collapse after both Israel and Hamas accused one another of breaking the terms of the agreement.
Netanyahu accused Hamas of “repeated violations”, including the “cynical use of the hostages for propaganda purposes”.
In response, Hamas official Izzat al-Rishq strongly condemned the decision to postpone the release of the prisoners in a statement on the morning of Sunday, February,23.
said that Israel’s claim that the handover ceremonies were humiliating was a “false claim and a flimsy argument” aimed at evading its obligations under the ceasefire agreement. Netanyahu’s statement came after four hostages taken captive on 7 October – Tal Shoham, Omer Shem Tov, Eliya Cohen and Omer Wenkert – were released on Saturday.
The two other released hostages, Avera Mengistu and Hisham al-Sayed, were held in Gaza for years – Mr Mengistu since 2014 and Mr al-Sayed since 2015.
In exchange, Israel was supposed to release 602 Palestinian prisoners. Hamas accused Israel of violating the agreement by delaying the release.
The six Israeli hostages are the final living hostages to be returned as part of the first phase of a ceasefire agreement. Meanwhile, outside the Ofer Prison in the occupied West Bank, family and friends waited for the release of Palestinian prisoners. According to Palestinian authorities, 50 prisoners who were going to be released were serving life sentences, 60 had long sentences, and 445 were detained by Israel since 7 October.
There are 62 hostages taken on 7 October 2023 still being held by Hamas, about half of whom are believed to be alive.
Hamas began releasing hostages, facilitated by the Red Cross, in exchange for Palestinian prisoners after the ceasefire agreement took effect on 19 January. Initial chaotic scenes have become more choreographed, with hostages flanked by fighters on stages before the handovers. On Saturday, Mr Shoham, 40, and Mr Mengistu, 39, were passed to the Red Cross in Rafah in southern Gaza before being transferred to the Israel Defense Forces (IDF).
Mr Shoham was visiting family at Kibbutz Be’eri in October 2023 when he and others, including his wife and two children, were kidnapped by Hamas. His captured family members were released after 50 days.
In a statement, his family said, “This is an unforgettable moment, where all emotions are rapidly mixing. Our Tal is with us.”
Mr Mengistu, who is Ethiopian-Israeli, had been held by Hamas since September 2014 when he crossed into northern Gaza. and Mr al-Sayed, a Bedouin Arab Israeli who entered Gaza in 2015, had both suffered from mental health problems in the past, according to their families.
Mr al-Sayed’s release was conducted privately in Gaza City on Saturday.
“After nearly a decade of fighting for Hisham’s return, the long-awaited moment has arrived,” his family said in a statement. “During these days, we need privacy for Hisham and the entire family so we can begin to care for Hisham and ourselves.”
Separately, at Nuseirat in central Gaza, Mr Shem Tov, 22, Mr Cohen, 27, and Mr Wenkert, 23, were freed in another public show by Hamas.
All three were taken captive at the Nova music festival.
Mr Shem Tov had initially escaped by car when Hamas fighters descended on the festival but was captured when he went back to rescue his friends.
Mr Cohen had hidden with his girlfriend Ziv Abud in a shelter at the festival but was found and driven away. The shelter was bombed, but Ms Abud survived and escaped.
Mr. Wenkert managed to send text messages to his family when festival-goers were being attacked, to tell them he was going to a safe shelter, but they lost contact with him.
Crowds in Tel Aviv’s Hostages Square greeted the public releases with cheers as they watched them unfold on a live feed.
Families celebrating the return of the six men called for all remaining hostages to be released.
“Our only request is to seize this window of opportunity to secure a deal that will… return all hostages home,” Mr Shoham’s family said.
The remaining hostages include Edan Alexander, a 21-year-old Israeli-American soldier captured on 7 October.
His mother, Yael Alexander, who was watching Saturday’s hostage release, told the BBC it was “amazing” to see them freed, but for her family it is “very tough” waiting. “There are more than dozens of young men alive, like my son, still waiting to be released,” she said. “This is the main goal, to release the live people now from Gaza.”
Saturday’s joyful scenes contrasted with earlier this week, when the bodies of hostages Shiri Bibas, her two young sons and another captive Oded Lifschitz were returned to Israel.
About 1,200 people – mostly civilians – were killed in the Hamas attacks on 7 October 2023 and 251 others were taken back to Gaza as hostages.
Israel launched a massive military campaign against Hamas in response, which has killed at least 48,319 Palestinians – mainly civilians – according to the Hamas-run health ministry.
