Parliament yesterday passed the Electronic Transfer Levy (E-Levy) Repeal Bill 2025, effectively abolishing the controversial tax on electronic transactions.
The move fulfills the government’s campaign promise to reduce what it describes as the “financial burden” on Ghanaians.
The E-Levy, introduced in 2022, imposed a tax on mobile money and other electronic transfers, sparking public outcry over its impact on disposable income.
On March 11, 2025, Minister of Finance, Dr Cassiel Ato Forson, announced the government’s intention to repeal the tax.
Parliament on March 13, 2025, was presented the Electronic Transfer Levy Repeal Bill alongside seven other bills aimed at scrapping taxes deemed excessive, including the 10 per cent withholding tax on betting winnings and the Emissions Levy, by the Finance Minister.
During the parliamentary debate, Majority Leader, Mahama Ayariga, supported the repeal, arguing that the tax had reduced disposable income for individuals and households.
He stated that its removal would return nearly GH¢2 billion annually to citizens.
“If we repeal the tax, individuals will no longer make those payments, and the money will remain in their hands,” Mr Ayariga explained.
He said that while the government would lose GH¢1.946 billion in revenue for the 2025 fiscal year, the amount would directly benefit Ghanaians, allowing them to spend on essential needs such as school fees and housing.
“The passage of the bill marks a major shift in the government’s tax policy. The removal of the E-Levy will surely encourage electronic transactions and ease financial pressure on Ghanaians,” Mr Ayariga stressed.
However, some MPs questioned the rationale for the repeal, with the MP for Abetifi, Bryan Acheampong, arguing that if the aim was to increase disposable income, the government should consider abolishing higher taxes such as VAT.
“If we are looking at ensuring disposable income for citizens, why don’t we repeal VAT, which is about 17 per cent?” he asked.
Despite his concerns about the justification, Mr Acheampong supported the bill, agreeing that the tax discouraged electronic transactions.
Former Deputy Minister of Finance, and MP for Nhyiaeso, Dr Stephen Amoah, also backed the repeal, but cautioned against making decisions solely based on public resistance.
He noted that Ghana’s economic recovery was still fragile, and the fiscal space had not fully improved.
“Although there seems to be restoration of our economy, our fiscal space has not reached a level where we should rush to repeal the bill,” Dr Amoah said.
BY RAISSA SAMBOU
