Scrapping E-levy, COVID-19 tax could cost Ghana GHS 6.4bn in revenue

President-elect John Dramani Mahama’s proposal to scrap the E-Levy and COVID-19 tax is expected to result in a revenue loss of GHS 6.4 billion in 2025. This move has raised concerns about fiscal sustainability, particularly under Ghana's IMF-supported economic program.

Government projections show the E-Levy will generate GHS 2.4 billion in 2025 (up from GHS 2.1 billion in 2024), while the COVID-19 Levy is expected to contribute GHS 3.97 billion (up from GHS 3.1 billion). Combined, the two taxes would yield GHS 1.2 billion more than in 2024.

Analysts warn the removal could increase borrowing and debt risks unless alternative revenue measures are introduced. Some experts suggest reducing import exemptions and zero-rated imports, which could generate up to GHS 9 billion, as a viable solution to offset the shortfall while maintaining fiscal stability.