Parliament approves E-Levy repeal, awaits presidential assent

Ghana’s Parliament has approved the repeal of the Electronic Transfer Levy (E-Levy). The bill now awaits President John Dramani Mahama’s signature to become law.

This decision fulfills a key campaign promise by President Mahama. He pledged to abolish the levy within his first 120 days in office.

The Electronic Transfer Levy (Repeal) Bill, 2025, was presented by Finance Minister Dr. Cassiel Ato Baah Forson. It was then referred to the Finance Committee for consideration.

The government had previously indicated its plan to scrap the levy in the 2025 budget. After discussions with officials from various departments, the Finance Committee endorsed the bill.

Parliament subsequently approved it. The E-Levy was introduced in 2022 and charged a 1% fee on electronic transactions. This was part of efforts to expand Ghana’s tax base.

However, it faced strong public opposition due to its effect on disposable incomes. The Finance Minister informed the Committee about broader tax reforms aimed at easing financial burdens on households.

The Committee noted that the levy discouraged digital payments while cash transactions remained untaxed. The Finance Minister stated that repealing the levy would encourage digital transactions and boost economic activity.

However, this repeal is expected to create a GHC 1.946 billion revenue shortfall for 2025. The Finance Minister assured lawmakers that alternative revenue measures are in place to offset this loss.

With Parliament's approval secured, the bill now awaits President Mahama's assent to take effect.