Finance Minister-designate Dr. Cassiel Ato Forson has reiterated his firm commitment and that of the new government to abolish the controversial Electronic Transactions Levy (E-Levy) within 120 days of taking office if confirmed.
Speaking during his vetting at the Appointments Committee on Monday, January 13, 2025, Dr. Forson explained his position and outlined possible strategies to mitigate the revenue impact of scrapping the levy.
He criticized the E-Levy as a flawed tax policy, stating that it neither qualifies as a direct nor indirect tax in conventional terms.
“I’ve written articles against the E-Levy. I championed opposition against it, and I still stand by my position. The E-Levy has pushed Ghana towards a cashless economy and hindered FinTech growth. We need to abolish it,” he said.
The nominee confirmed that the plan to abolish e-levy aligns with the National Democratic Congress (NDC) manifesto and President John Mahama’s 120-day agenda.
“As part of our first budget, I will announce the abolition of the E-Levy. This will be done within the first 120 days, as promised by His Excellency President Mahama,” Dr. Forson assured.
When asked about the potential loss of revenue from abolishing the E-Levy, Dr. Forson emphasized the importance of addressing government expenditure as an alternative to replacing lost revenue.
“It shouldn’t always be about revenue,” he said. “You either remove the E-Levy and replace it, or remove it and cut corresponding expenditure.”
He reiterated his commitment to abolishing the levy, stating, “My commitment remains—the E-Levy will go, and it will go immediately.”
Dr. Forson added that the NDC government would assess the impact of removing the E-Levy, evaluate expenditure lines holistically, and focus on cutting wasteful spending rather than essential social interventions.