GAB hints at possible return of E-Levy amid growing digital economy

John Awuah is the Deputy Chief Executive of the Ghana Association of Bankers (GAB). He recently hinted at the possible return of the Electronic Transaction Levy (E-Levy). This comes as digital financial systems grow worldwide.

Mr. Awuah noted that many economies are adopting digital platforms for transactions. Governments may reconsider policies like the E-Levy to increase domestic revenue. He stated, “Digitalisation has taken over every economy in the world.” He believes the E-Levy might return in the future.

While he did not take a firm stance on the levy, he highlighted its potential importance. Traditional tax systems may not meet current revenue needs effectively.

The E-Levy was first introduced in 2022. It taxed electronic transactions, including mobile money transfers. The levy faced public backlash due to concerns about discouraging digital payments and harming financial inclusion. Eventually, amid resistance and policy reviews, the government suspended it.

Mr. Awuah’s comments indicate that discussions about innovative taxation like the E-Levy may resurface as Ghana's digital economy grows. He shared these insights during an interview with Kwasi Afriyie on Good Afternoon Ghana on Metro TV.