Parliament has passed a bill abolishing three controversial taxes—the Electronic Transfer Levy (E-Levy), the Emission Levy, and the Betting Tax—marking a significant policy shift aimed at providing financial relief to Ghanaians and businesses.
The bill, passed on Wednesday, March 26, now awaits President John Dramani Mahama’s assent to become law.
The historic decision to scrap these taxes has been met with widespread public approval, with many celebrating it as a victory for economic fairness and digital financial inclusion.
The E-Levy, first introduced in 2022 by the previous New Patriotic Party (NPP) administration, imposed a 1.5% tax on electronic transactions, including mobile money and bank transfers. It faced fierce resistance from the public, businesses, and opposition parties, who argued that it disproportionately affected low-income earners and discouraged digital transactions.
The passage of the bill fulfills a key campaign promise by President Mahama and the National Democratic Congress (NDC), who vowed to abolish the levy if elected. When the motion was put before Parliament, there was unanimous support, with no dissenting voices against repealing the tax.
“We have listened to the voices of Ghanaians, and today, we have taken a major step towards easing their financial burdens. The E-Levy was an unfair tax that stifled digital transactions, and its removal will restore confidence in our financial system,” said Minority Leader Mahama Ayariga after the vote.
In addition to the E-Levy, Parliament also voted to abolish the Emission Levy and the Betting Tax, two other contentious revenue measures.
The Emission Levy, introduced in 2024 to curb carbon emissions, imposed additional costs on vehicle owners and businesses reliant on transportation. While the government initially argued that the levy would promote environmental sustainability, it was widely opposed by the transport sector, which saw it as an undue financial strain.
Similarly, the 10% Betting Tax, which was imposed on winnings from gambling activities, had been met with resistance from betting companies and punters, who argued that it discouraged participation and led to a decline in revenue.
The repeal of these taxes is expected to provide immediate relief to businesses and consumers while also reshaping Ghana’s tax landscape.
However, tax experts caution that the government must identify alternative revenue streams to compensate for the potential shortfall.
With the bill now awaiting President Mahama’s signature, many Ghanaians are hopeful that its enactment will mark a turning point in the country’s economic recovery.
The President, who campaigned on a promise to remove burdensome taxes, is expected to give his assent in the coming days.