Ghana’s Parliament has officially repealed the Electronic Transaction Levy (E-Levy), which imposed a 1% charge on electronic financial transactions. The tax, introduced in 2022 under the Akufo-Addo administration, faced widespread opposition and became a major topic in the 2024 elections. Both the ruling New Patriotic Party (NPP) and the opposition National Democratic Congress (NDC) addressed the issue in their campaigns, with the latter promising its removal. The repeal was initiated by the newly elected John Mahama-led NDC government, with Finance Minister Dr. Cassiel Ato Forson presenting a Legislative Instrument (LI) to amend the law. After parliamentary deliberations, the motion was supported by Finance Committee Chairman Isaac Adongo and former Deputy Finance Minister Dr. Stephen Amoah. Former Agriculture Minister Bryan Acheampong also endorsed the repeal but called for further reviews of taxes such as VAT to provide more economic relief.
While many citizens and businesses welcomed the repeal, government officials acknowledged the potential financial impact. Deputy Finance Minister Thomas Ampem-Nyarko admitted that the removal of the levy would result in an annual revenue loss exceeding GHS 2 billion. Despite this, Finance Minister Dr. Forson assured Ghanaians that the government would implement alternative strategies to compensate for the shortfall while ensuring tax policies do not overburden citizens. The Electronic Transfer Levy (Repeal) Bill 2025 officially nullifies the Electronic Transfer Levy Act, 2022 (Act 1075), marking a significant shift in Ghana’s fiscal policy. Economists have urged the government to quickly develop new revenue streams to prevent disruptions in public spending and essential services.
The repeal of the E-Levy is expected to provide financial relief to individuals and businesses reliant on electronic transactions. Many view the move as a victory for public advocacy and an indication of the government's responsiveness to economic concerns. However, analysts remain cautious, emphasizing the need for a balanced approach to taxation and economic growth. The coming months will test the government's ability to implement alternative revenue measures while maintaining fiscal stability. The decision marks a significant policy shift, and its long-term impact on Ghana’s economy remains to be seen.
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