News:
March 26, 2025
The Parliament of Ghana on Wednesday, March 26, 2025 approved the repeal of the Electronic Transfer Levy (E-Levy).
The Finance Minister, Cassiel Ato Forson during the presentation of the 2025 Budget Statement and Fiscal Policy of the government announced the government decision to abolish the E-levy among other taxes usually referred to as ‘nuisance taxes’.
Dr. Cassiel Ato Frson presented the Electronic Transfer Levy (Repeal) Bill, 2025, and it was referred to the Finance Committee for consideration.
The Committee in their report stated that the levy discouraged the adoption of digital payments by penalizing electronic transactions while cash transactions remained untaxed.
The Finance Minister emphasized that repealing the levy would encourage digital transactions, potentially lower inflation, and boost economic activity.
The removal of the E-levy became a topical issue in the lead to the 2024 general elections with the two leading political parties promising to get rid of it.
The introduction of the levy by the previous government in 2022 was without issues as it targeted electronic financial transactions including mobile money transfers, bank transfers, and online payments.
Following the controversies around the levy, the initial 1.5% tax was eventually reduced to 1% and affected transactions above GHC100.00
Meanwhile, the President of the Republic John Dramani Mahama would have to assent to it to take effect.
Ghanamps.com