Mahama Set to Approve Repeal of E-Levy, Emission Levy, and Betting Tax
Finance Minister Dr. Cassiel Ato Forson has expressed confidence that President John Mahama will swiftly sign the recently passed bill abolishing the E-Levy, Emission Levy, and Betting Tax. Parliament's approval of these repeals is expected to provide financial relief to businesses and individuals affected by these levies. In a social media post, Dr. Forson assured Ghanaians that Mahama would not hesitate to formalize the bill into law. The Emission Levy, introduced in 2024, aimed at promoting environmental sustainability but faced opposition from businesses and vehicle owners due to its financial burden. Similarly, the 10% Betting Tax, which sought to generate revenue from the gambling industry, was criticized for discouraging participation and negatively impacting betting operators.
The repeal of these levies is expected to ease the tax burden on various sectors while reshaping income tax structures and corporate taxation policies. However, the Finance Minister also announced that the government would discontinue the tax exemption policy under the One District, One Factory (1D1F) initiative due to widespread abuse. Addressing Parliament, Dr. Forson stated that evidence showed the policy had been exploited, leading to financial losses. While the initiative was originally designed to boost industrialization, he emphasized that it had failed to achieve its intended goals and was instead being used to evade tax obligations. The government remains committed to supporting local industries but will explore alternative measures to ensure transparency and accountability.
As Ghana moves forward with these fiscal changes, the government must balance revenue generation with economic growth. The repeals signal a shift toward a more business-friendly tax environment, but concerns remain over how the government will recover lost revenue. Economists and industry experts have urged policymakers to introduce well-structured alternatives that do not overburden taxpayers. Mahama’s imminent approval of the bill is seen as a fulfillment of campaign promises, reinforcing his administration’s commitment to reducing financial strain on Ghanaians. The coming months will determine the effectiveness of these changes and their impact on economic stability.
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