Ghana’s Parliament has approved the repeal of the Electronic Transfer Levy (E-Levy), a contentious tax on electronic transactions introduced in 2022. Apexnewsgh reports
The bill, which was presented by Finance Minister Dr. Cassiel Ato Baah Forson, now awaits President John Dramani Mahama’s assent to become law.
The E-Levy’s repeal is a significant victory for Ghanaian citizens, who had strongly opposed the tax due to its impact on their disposable incomes. Despite its intention to expand Ghana’s tax base, the levy had discouraged the adoption of digital payments, penalizing electronic transactions while leaving cash transactions untaxed.
The Finance Minister emphasized that repealing the levy would encourage digital transactions, potentially lower inflation, and boost economic activity. However, the repeal is expected to create a significant revenue shortfall of GHC 1.946 billion for the 2025 fiscal year. To offset this loss, the government has put in place alternative revenue measures, including the repurposing of the tax refund account.
The repeal of the E-Levy is a major fulfillment of President Mahama’s campaign promise to abolish the levy within his first 120 days in office.
With Parliament’s approval secured, the bill now awaits the President’s assent to take effect, marking a significant step towards alleviating the financial burden on Ghanaian households and promoting a more inclusive financial ecosystem.
Source: Apexnewsgh.com
