Ghanaian Parliament Repeals E-Levy, Awaits President Mahama’s Approval

• Parliament has passed the Electronic Transaction Levy (Repeal) Bill to scrap the Electronic Transaction Levy
• The controversial e-levy was 1% on all electronic transactions, with a daily free limit and some exemptions
• Ghana's Parliament also passed the Income Tax (Amendment) Bill and the Emissions Levy (Repeal) Bill

Parliament has passed the Electronic Transaction Levy (Repeal) Bill as part of moves to remove the 1% Electronic Transaction Levy.

The bill, which was passed on March 26, awaits President John Mahama's assent to finalise the controversial levy's scrapping.

Introduced in 2022, the controversial e-levy was a 1% on all electronic transactions, with a daily free limit of GH¢100 and specific exemptions.

At the time, the government said this was part of a seven-point agenda aimed at restoring macroeconomic stability and accelerating economic transformation.

The levy has been wildly unpopular and sparked protests from regular Ghanaians and mobile money vendors who have decried the double taxation.

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Other taxes awaiting review by Ghana's Parliament

Parliament has also passed the Income Tax (Amendment) Bill, 2025 while the Emissions Levy (Repeal) Bill, 2025 was also passed as part of tax reforms.

As part of the Value Added Tax (VAT) reforms, there will be a reversing the decoupling of the Ghana Education Trust Fund and the National Health Insurance Levy.

This will reduce the effective VAT rate for households and businesses, reverse the VAT flat rate regime and upwardly adjust the VAT registration threshold to exempt micro and small businesses from the collection of the tax.

Samson Asaki Awingobit, the Executive Secretary of the Importers and Exporters Association, told YEN.com.gh that the business community would be pushing for more favourable tax reforms in the 2025 mid-year budget.

“We are very optimistic, we are satisfied. We will continue to push and like Oliver Twist, ask for more.”

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Sammy Awuku speaks on scrapping betting tax

Sammy Awuku, a former Director-General of the National Lottery Authority and member of the opposition, has previously backed the scrapping of the betting tax, which is also expected to be repealed.

Awuku, now the Akuapem North legislator, said the betting and lottery winnings tax was counterproductive.

The former National Lottery Authority boss argued that the tax makes illegal betting operators more attractive to those looking to gamble.

The 10% withholding tax on betting and lotteries was introduced on August 15, 2023, to raise about GH¢400 million annually.

No new taxes in 2025 budget

YEN.com.gh also previously reported that there were no new taxes in the 2025 budget presented by the Finance Minister recently.

This was in line with assurances from Minister Dr Cassiel Ato Forson and Deputy Finance Minister-designate Thomas Nyarko Ampem.

He said the government would instead focus on improving tax compliance and expanding the tax base through different methods.

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The Deputy Finance Minister-designate was responding to suggestions from the opposition that new taxes would be introduced.

He said the government would not increase taxation, complying with campaign promises to ease the financial burden on citizens.

Proofreading by Bruce Douglas, copy editor at YEN.com.gh.

Source: YEN.com.gh