Ghana’s Parliament Abolishes E-Levy in Significant Policy Change

Ghana’s Parliament Abolishes E-Levy in Significant Policy Change

Parliament in Ghana has approved the repeal of the Electronic Transaction Levy (E-Levy) following the passage of the Electronic Transaction Levy (Repeal) Bill, 2025, on Wednesday, March 26.

The E-Levy, introduced in March 2022 under the previous New Patriotic Party (NPP) administration, was imposed on electronic transactions such as mobile money and bank transfers. Initially set at 1.5 percent, the rate was reduced to 1 percent in January 2023 after public backlash.

Finance Minister Dr. Cassiel Ato Forson announced in the 2025 Budget Statement that the government planned to abolish the levy along with other taxes, including the 10 percent tax on lottery winnings and the Emissions Tax.

Presenting the budget to Parliament on March 11, Dr. Forson stated that the move aimed to ease the tax burden on citizens while strengthening social protection programs.

The repeal is expected to bring relief to individuals and businesses that have opposed the levy since its introduction.

Critics argued that it disproportionately affected low-income earners and discouraged the use of digital payment platforms, stifling financial inclusion. Protests and public outcry had been ongoing, with many questioning the tax’s effectiveness in generating the projected revenue.

President John Dramani Mahama and the National Democratic Congress (NDC) had pledged to scrap the E-Levy as part of their 2024 election campaign. With Parliament’s approval, the bill now awaits President Mahama’s formal assent to take effect.

The decision has been widely welcomed, particularly by those in the informal sector who bore the brunt of the levy.