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Tag: E-levy

  • Mahama asserts E-levy removal will encourage digital financial inclusion

    Mahama asserts E-levy removal will encourage digital financial inclusion

    President John Dramani Mahama has defended the scrapping of the Electronic Transaction Levy (E-levy), describing it as a strategic move aimed at enhancing digital financial services in Ghana.

    Speaking at the Czech-Ghana Business Cooperation Seminar held at the Mövenpick Hotel on Wednesday, April 8, President Mahama highlighted the broader vision behind the repeal.

    “In financial and digital services, Ghana is undergoing a rapid digital transformation. The recent repeal of the e-levy on electronic transactions, among other taxes, promises further growth and inclusion in our financial sector,” he stated.

    The E-levy, which imposed a 1% tax on transactions conducted through electronic or digital platforms, was officially abolished on April 2, 2025, following Parliament’s approval of the repeal bill.

    Subsequently, the Ghana Revenue Authority (GRA) directed all financial institutions and payment platforms to immediately cease the application of the levy.

    While the decision has sparked mixed reactions—particularly among critics who argued that the levy had become a significant source of government revenue.

    To enforce compliance, the GRA has announced that it will conduct regular inspections across all financial institutions and payment platforms.

    “Failure to comply with the above directives constitutes an offence, and sanctions will be imposed as prescribed by law,” the statement cautioned.

    Moreover, institutions must retain electronic transfer records for at least six years, in line with Section 27(3) of the Revenue Administration Act, 2016 (Act 915).

    The abolition of the E-Levy is expected to reinvigorate digital transactions in Ghana, particularly mobile money transfers, which saw a decline when the tax was first introduced. Analysts believe the decision will promote financial inclusion and drive digital payments, aligning with Ghana’s broader economic strategy.

  • GRA directs financial institutions, payment platforms to cease applying e-levy 

    GRA directs financial institutions, payment platforms to cease applying e-levy 

    The Ghana Revenue Authority (GRA) has ordered all financial institutions and payment platforms to immediately halt the application of the 1% Electronic Transfer Levy (E-Levy), following its official repeal.

    Per the new directive, which takes effect from midnight on April 2, 2025, all entities responsible for charging the levy must ensure their systems are reconfigured to reflect the change. Edward Apenteng Gyamerah, Commissioner of the Domestic Tax Revenue Division, issued the notice on behalf of the Commissioner-General, making it clear that failure to comply will attract sanctions.

    “The GRA Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically return a ‘no charge’ on all transactions posted to it by entities from midnight,” the directive stated.

    A key component of the new policy is the requirement for financial institutions and mobile money operators to initiate refunds for customers who may have been charged beyond the official abolition date.

    “Charging Entities must immediately process refunds for any E-Levy amounts deducted from customers effective today, April 2, 2025.

    Entities are to establish an expedited refund process and maintain proper documentation of all refunds processed,” the statement outlined.

    Additionally, all Charging Entities are required to submit comprehensive reports on refunds issued to the GRA to ensure transparency.

    While the E-Levy is no longer in effect, the GRA has emphasized that all institutions must account for levy collections made before April 2.

    “Charging Entities are to take the necessary steps to file and pay all outstanding E-Levy charged and collected on all transactions that occurred before April 2, 2025,” the directive warned.

    Failure to do so will result in legal consequences and penalties under Ghana’s tax regulations.

    Compliance Measures and Future Implications

    To enforce compliance, the GRA has announced that it will conduct regular inspections across all financial institutions and payment platforms.

    “Failure to comply with the above directives constitutes an offence, and sanctions will be imposed as prescribed by law,” the statement cautioned.

    Moreover, institutions must retain electronic transfer records for at least six years, in line with Section 27(3) of the Revenue Administration Act, 2016 (Act 915).

    The abolition of the E-Levy is expected to reinvigorate digital transactions in Ghana, particularly mobile money transfers, which saw a decline when the tax was first introduced. Analysts believe the decision will promote financial inclusion and drive digital payments, aligning with Ghana’s broader economic strategy.

    With this directive now in effect, electronic money transfers can proceed without additional deductions, while the GRA remains vigilant in ensuring full compliance.

  • Finance Minister tweets “it’s finished” after Mahama’s assent to e-levy repeal bill

    Finance Minister tweets “it’s finished” after Mahama’s assent to e-levy repeal bill

    Finance Minister Dr. Cassiel Ato Forson has succinctly celebrated the abolition of the Electronic Transfer Levy (E-Levy) and other taxes, tweeting “It is finished” after President John Dramani Mahama signed the repeal bill into law.

    This move marks a significant milestone in the government’s efforts to ease the financial burden on Ghanaians and foster economic growth.

    The repealed taxes include the betting tax, emissions tax, and other levies. The E-Levy, introduced in 2022, had imposed a 1.5% tax on electronic transactions, sparking widespread criticism from the public and business community. Many argued that it stifled digital transactions and placed an unnecessary burden on citizens.

    The removal of these taxes was a core pledge in the National Democratic Congress (NDC)’s manifesto, aimed at reducing the cost of living and encouraging business expansion. With the repeal bill now signed into law, many Ghanaians are celebrating the move as a step towards financial relief.

    Supporters of the repeal argue that eliminating these levies will promote digital transactions, stimulate economic activity, and improve disposable income for households and businesses. The Finance Minister’s tweet suggests that the government is committed to fulfilling its campaign promises and easing the financial burden on citizens.

  • Mahama will assent to removal of E-levy, others without delay – Ato Forson

    Mahama will assent to removal of E-levy, others without delay – Ato Forson

    Finance Minister Dr. Cassiel Ato Forson has expressed confidence that President John Dramani Mahama will promptly sign into law the newly passed bill that eliminates the E-Levy, Emission Levy, and Betting Tax.

    The bill, which recently secured parliamentary approval, seeks to ease financial burdens on businesses and individuals affected by these tax measures. Its passage marks a significant shift in the country’s taxation policies, with various stakeholders welcoming the move as a relief for the economy.

    Following the bill’s approval, Dr. Ato Forson shared his optimism on social media, stating, “Parliament has just passed the Income Tax (Amendment) Bill, 2025, which abolishes the ‘Betting Tax’ and other levies. I have no doubt that H.E. President John Dramani Mahama will be more than willing to sign it into law without delay.”

    The Emission Levy, introduced in 2024 to promote environmental sustainability, faced intense criticism from vehicle owners and businesses, who argued that it placed an undue financial strain on them. Likewise, the 10% Betting Tax, aimed at generating revenue from the gambling industry, was widely condemned for discouraging participation and negatively impacting betting operators’ earnings.

    With the repeal of these taxes, experts anticipate a shift in the country’s income tax structure and corporate taxation policies, potentially fostering a more business-friendly environment. The removal of the levies is expected to alleviate tax obligations across various sectors and stimulate economic activity.

    https://twitter.com/Cassielforson/status/1904927039963996510

  • Parliament passes e-levy repeal bill

    Parliament passes e-levy repeal bill

    Parliament has approved a bill to repeal the Electronic Transfer Levy (E-Levy), marking a significant policy shift aimed at reducing the tax burden on Ghanaians.

    The bill, passed on Wednesday, March 26, will now be sent to President John Dramani Mahama for his assent.

    The E-Levy, introduced in 2022 under the previous New Patriotic Party (NPP) administration, imposed a 1.5% tax on electronic transactions, including mobile money transfers, bank transactions, and online payments.

    Although it was later reduced to 1%, the levy remained unpopular, drawing criticism from businesses, consumers, and political stakeholders who argued that it stifled digital transactions and disproportionately affected low-income earners.

    The decision to scrap the tax aligns with the Mahama administration’s broader agenda to eliminate what it describes as “nuisance taxes” imposed under the former government. During the presentation of the 2025 Budget Statement on March 11, Finance Minister Dr. Cassiel Ato Forson announced the government’s commitment to repealing multiple levies to ease financial pressures on businesses and households.

    “Mr. Speaker, we will abolish the 10% withholding tax on winnings from lotteries, otherwise known as the ‘betting tax.’ We will abolish the Electronic Transfer Levy (E-Levy) of 1%. We will abolish the emission levy on industries and vehicles. We will abolish the VAT on motor vehicle insurance policies. And we will abolish the 1.5% withholding tax on the sale of unprocessed gold by small-scale miners,” he stated.

    With Parliament’s approval of the repeal, the E-Levy joins a list of taxes that are set to be abolished once the 2025 budget is fully implemented. Other levies to be scrapped include the COVID-19 Health Recovery Levy, the betting tax, and VAT on motor insurance policies.

    While the repeal has been widely welcomed, some economic analysts have raised concerns about the potential revenue gap it could create. The government has assured the public that measures are being put in place to address any shortfall, including adjustments to the tax refund ceiling and improved revenue collection strategies.

    Government data shows that as of the end of 2024, revenue from the COVID-19 Health Recovery Levy stood at approximately GH¢6.4 billion, while the E-Levy generated GH¢246.9 million. Despite the removal of these taxes, the Mahama-led administration maintains that its new tax policy will support economic recovery without placing excessive financial pressure on Ghanaians.

    https://twitter.com/Cassielforson/status/1904903791356371332

  • Adwoa Safo was not in Parliament during E-levy voting – Hopeson Adorye

    Adwoa Safo was not in Parliament during E-levy voting – Hopeson Adorye

    Movement for Change, Hopeson Adorye, has raised doubts about the identity of the woman who was presented as Sarah Adwoa Safo on the day Parliament voted on the E-Levy.

    According to him, noticeable differences in appearance suggest she was a stand-in rather than the former Dome-Kwabenya MP.

    Speaking on Maakye, a program on Onua TV, on March 20, Adorye discussed the matter while analyzing recent disclosures made by Adwoa Safo in multiple interviews.

    “The footage of the woman in the nose mask revealed that she clearly has different features from Adwoa Safo. The body size could be justified on grounds that perhaps she had gained weight due to childbirth, but the forehead and neck clearly do not resemble Adwoa Safo and Bagbin must take decisive action to probe this matter to reach a sane conclusion,” he demanded.

    Adorye, who was previously affiliated with the NPP, described the situation as a clear case of dishonesty and stressed the need for those involved to face consequences.

    He urged Sarah Adwoa Safo to speak openly about the matter, stating that revealing the complete truth would clear her of any wrongdoing.

    “They should invite Adwoa and project the images of herself juxtaposed with the masked woman and allow her to point out which of the two pictures is her. She maintained her silence under duress, but she should open up now since the NPP is out of power. She should come out before any investigation proves otherwise,” he said.

    Adorye highlighted that during the time leading up to the E-Levy vote, Adwoa Safo was frequently active on TikTok, casting doubt on her presence in Parliament that day.

    He argued that her insistence on not voting contradicts her claim of being the person who appeared in Parliament at the time.

    Calling for a comprehensive probe, he emphasized that historical parliamentary footage dating back to 1992 could serve as crucial evidence.

    He further cautioned that Speaker Alban Bagbin’s credibility would be at stake if he failed to take action on the matter.

    “It is fair to say that, at the time it happened, the NDC was in opposition and it was quite difficult to press for a resolution on the matter. But now the NDC is in power and Bagbin has all the needed apparatus within his reach to launch a full-scale investigation in the matter,” he said.

  • I didn’t vote for the e-levy – Adwoa Safo

    I didn’t vote for the e-levy – Adwoa Safo

    Former Dome-Kwabenya Member of Parliament, Sarah Adwoa Safo, has defended her decision to oppose the controversial Electronic Transactions Levy (E-Levy), emphasizing that it was a major factor in the New Patriotic Party’s (NPP) electoral loss.

    In an interview on JoyNews’ The Pulse on Thursday, March 20, Adwoa Safo explained why she refused to support the policy, arguing that it failed to fulfill its intended purpose and instead placed an undue burden on Ghanaians.

    “I didn’t vote for the e-levy, and I have no regrets about my decision,” she stated. “I refrained from supporting it because I believed it wouldn’t benefit the people of Ghana. Instead, it would take away from their already limited resources, especially the most vulnerable members of society.”

    Reflecting on the NPP’s defeat in the 2024 general elections, she pointed to the e-levy as one of the key reasons for the party’s decline in popularity.

    “Ghanaians voted against us partly because of the E-levy,” she asserted.

    She further criticized how the tax affected individuals in low-income jobs, particularly those relying on mobile money services to support their families in rural areas.

    “Individuals who were most affected were those working in low-paying jobs, who relied on sending money back to their families in the villages. These individuals were already struggling, and the e-levy took away the little they had. It was a tax on their hard-earned money, further deepening their difficulties,” she added.

    Adwoa Safo also highlighted the contradiction between government assurances and the economic reality that unfolded after the levy’s implementation.

    “We were told that by introducing the e-levy, Ghana could avoid going to the International Monetary Fund (IMF). However, in the end, we still ended up seeking IMF support. Despite implementing this tax, the government was unable to avoid the very financial assistance it promised we could manage without.”

    Referencing Vice President Dr. Mahamudu Bawumia’s 2024 campaign promise to abolish the e-levy, she said recent developments had validated her stance.

    “I feel vindicated,” she said. “If the e-levy was truly a good tax, why did we still end up at the IMF? How can we justify taxing those who are already struggling, especially when it didn’t even prevent us from seeking IMF support?”

    She concluded by reiterating that the policy had failed in its objectives and only worsened financial hardship for ordinary Ghanaians.

    “It just didn’t make sense,” she said. “The e-levy hurt ordinary Ghanaians, and in the end, it didn’t achieve what it promised.”

    The e-levy, first introduced by the Finance Ministry on May 1, 2022, and signed into law by then-President Nana Akufo-Addo on March 31, 2022, originally stood at 1.75% before public backlash forced a reduction to 1%. It applied to electronic transactions, including mobile money transfers, bank transactions, and merchant payments. Critics argued that it disproportionately affected low-income earners and small businesses, fueling widespread opposition.

    Meanwhile, Deputy Finance Minister Thomas Ampem Nyarko has announced that the e-levy will be scrapped by the end of March. Speaking on Channel One TV’s OXFAM Tax Dialogue on Tuesday, March 18, he confirmed that its removal is tied to the approval of the 2025 budget and appropriation bill.

  • Adwoa Safo breaks silence on NPP’s unfair treatment by NPP, explains opposition to E-Levy

    Adwoa Safo breaks silence on NPP’s unfair treatment by NPP, explains opposition to E-Levy

    Former Dome Kwabenya MP, Sarah Adwoa Safo, has spoken out about the challenges she faced within her own party, the New Patriotic Party (NPP), during her final two years in Parliament.

    In an interview with Asempa FM on March 18, 2025, she revealed that she was stripped of her role as Deputy Majority Leader and later assigned to the backbench, which she saw as an attempt to embarrass her.

    Adwoa Safo claimed that some NPP members in Parliament, along with party leaders, intentionally worked to damage her reputation.

    “Look, it got to a time, in Parliament, we have a certain rule and practice—it has become more like a custom. Someone who has served as a deputy leader before is usually seated right behind the leaders. You can take notice of where Haruna and Muntaka sit. But when I was removed, I was made to sit at the backbench like a newcomer in Parliament.”

    Adwoa Safo shared that her relocation to a prominent position was orchestrated by the party’s General Secretary and Majority Whip. During the same discussion, she defended her choice to abstain from voting on the contentious E-Levy bill proposed by the NPP administration.

    She clarified that her stance was rooted in her principles and feedback from her constituents, especially church members in Dome Kwabenya, who expressed concerns that the levy would intensify financial struggles.

    “I made that principled decision because I knew the E-Levy would not benefit Ghanaians but rather impose more burdens on them.“

    Her absence during the E-Levy vote contributed to the majority caucus’ struggle to pass the bill, a move that strained her relationship with the party leadership.

    Adwoa Safo’s revelations shed light on the internal struggles within the NPP.

  • Scrapping E-levy will allow Ghanaians save, spend, and invest – Franklin Cudjoe

    Scrapping E-levy will allow Ghanaians save, spend, and invest – Franklin Cudjoe

    IMANI Africa’s Founding President, Franklin Cudjoe, has identified tax adjustments in the 2025 budget as a source of financial relief for citizens.

    During an interview on The Keypoints on March 15, he noted that reducing levies like the e-levy would ease financial pressure on individuals by increasing their disposable income.

    “If we are providing relief for taxes like e-levy… substantially, you’re putting some money back into people’s hands, more or less disposable income,” he said on The Keypoints on March 15.

    While acknowledging that tax cuts alone won’t resolve all economic hardships, Cudjoe stressed that they contribute to reducing financial burdens.

    He also questioned whether the budget effectively addresses the real challenges facing Ghanaians.

    “What is the essence of the budget if it is not going to affect positively people’s livelihoods—from healthcare to education to hardcore poverty?” he asked.


  • Finance Minister lays bill to abolish e-levy, betting tax

    Finance Minister lays bill to abolish e-levy, betting tax

    Finance Minister Dr Cassiel Ato Forson has laid before Parliament a bill to abolish several taxes, including the Electronic Transaction Levy (E-Levy), the COVID-19 Levy, and the 10% tax on lottery winnings, commonly referred to as the betting tax.

    Finance Minister Dr. Cassiel Ato Forson earlier emphasized the need for a swift legislative process to abolish the taxes.

    He expressed confidence that repealing these taxes would be straightforward due to their simplicity.

    “Repealing the taxes will be one clause each. Repealing the betting tax is very easy, the e-levy and all of those things we are repealing are quite easy,” he added.

    The Finance Minister explained that since the bills fall under revenue legislation, they qualify to be laid before Parliament under a certificate of urgency.

    “It’s a revenue bill, and under the Constitution, you have any way to lay finance bills under a certificate of urgency,” he explained.

    The proposal to eliminate these taxes aligns with the Mahama-led government’s commitment to scrapping what it describes as “nuisance taxes” implemented by the previous Akufo-Addo administration.

    While presenting the 2025 Budget Statement to Parliament on March 11, Dr. Forson officially announced the plan to repeal multiple taxes.

    “Mr. Speaker, we will abolish the 10% withholding tax on winnings from lotteries, otherwise known as the ‘betting tax.’ We will abolish the Electronic Transfer Levy (E-Levy) of 1%. We will abolish the emission levy on industries and vehicles. We will abolish the VAT on motor vehicle insurance policies. And we will abolish the 1.5% withholding tax on the sale of unprocessed gold by small-scale miners,” he stated.

    He noted that these tax removals aim to alleviate financial burdens on households while boosting business growth and improving tax compliance.

    “…the removal of these taxes will ease the burden on households and improve their disposable incomes. In addition, it will support business growth and improve tax compliance,” he added.

    So far, the government has announced the removal of six taxes: the 10% betting tax, the 1% E-Levy, the emission levy on industries, VAT on motor insurance, the 1.5% withholding tax on unprocessed gold sales, and the COVID-19 levy. These tax repeals will take effect once the 2025 budget is passed by Parliament.

    Despite the anticipated relief for individuals and businesses, some experts and analysts have raised concerns about the potential impact on Ghana’s already struggling economy. In response, the government has outlined measures to mitigate the revenue shortfall, including adjustments to the tax refund ceiling.

    “Mr. Speaker, by reducing the ceiling on the tax refund from 6% to 4%, we will save GH¢3.8 billion. This amount is enough to close the revenue shortfall from the removal of the E-Levy, amounting to GH¢1.9 billion, and the betting tax of GH¢180 million,” Dr. Forson stated.

    Meanwhile, government revenue reports indicate that by the end of 2024, approximately GH¢6.4 billion had been collected from the COVID-19 Health Recovery Levy, GH¢246.9 million from the E-Levy, and about GH¢120 million from other levies.

    The fate of the proposed tax abolitions now rests with Parliament, as the government pushes for an expedited legislative process to implement these changes.

  • Over 17,000 MoMo businesses collapsed due to E-levy – MoMo Agents Association

    Over 17,000 MoMo businesses collapsed due to E-levy – MoMo Agents Association

    General Secretary of the Mobile Money Agents Association of Ghana, Evans Otumfuo has revealed that the introduction of the electronic transaction levy (E-Levy) led to the collapse of nearly 17,000 mobile money businesses nationwide.

    In an interview with the media yesterday, Otumfuo indicated that the excessive taxation drained the working capital of many agents, ultimately pushing them out of business.

    After a conducted internal survey, the association discovered that that numerous agents shut down their operations due to repeated deductions on transactions, whether carried out through banks or among fellow agents.

    “Momo agents at a point were subjected to the various forms of levy deductions. We lost our working capital, it hasn’t been in the interest of our business so far. We received it as a piece of good news, the cancellation of E-levy, we really look forward to its implementation.”

    The former President Akufo-Addo signed the E-Levy Bill into law on March 31, 2022.

    Subsequently, the Electronic Transaction Levy (E-Levy) was introduced to Ghanaians by the finance ministry on May 1, 2022.

    Its implementation was met with significant public opposition, as many Ghanaians raised concerns about the financial burden it imposed. The levy was widely regarded as an additional strain on citizens, leading to widespread dissatisfaction.

    However, in a recent development, the current Finance Minister, Dr. Cassiel Ato Forson, announced the abolition of the E-Levy as part of the 2025 budget.

    This decision has been welcomed by many Ghanaians, who view it as a much-needed relief from the financial strain caused by the levy.

  • Bill to abolish e-levy, others must be taken through a certificate of urgency – Ato Forson

    Bill to abolish e-levy, others must be taken through a certificate of urgency – Ato Forson

    Finance Minister Dr. Cassiel Ato Forson has emphasized the need for a swift legislative process to abolish several taxes, including the Electronic Transaction Levy (E-Levy), the COVID-19 Levy, and the 10% tax on lottery winnings, commonly referred to as the betting tax.

    Dr. Forson revealed that the bills to repeal these taxes would be presented to Parliament on Wednesday, March 13, under a certificate of urgency to ensure a speedy passage.

    “Tomorrow morning, I will be going to Parliament to submit the bills, and I expect Parliament to take them through a certificate of urgency,” Dr. Forson stated during an interview on JoyNews PM Express on Tuesday, March 11.

    He expressed confidence that repealing these taxes would be straightforward due to their simplicity.

    “Repealing the taxes will be one clause each. Repealing the betting tax is very easy, the e-levy and all of those things we are repealing are quite easy,” he added.

    The Finance Minister explained that since the bills fall under revenue legislation, they qualify to be laid before Parliament under a certificate of urgency.

    “It’s a revenue bill, and under the Constitution, you have any way to lay finance bills under a certificate of urgency,” he explained.

    The proposal to eliminate these taxes aligns with the Mahama-led government’s commitment to scrapping what it describes as “nuisance taxes” implemented by the previous Akufo-Addo administration.

    While presenting the 2025 Budget Statement to Parliament on March 11, Dr. Forson officially announced the plan to repeal multiple taxes.

    “Mr. Speaker, we will abolish the 10% withholding tax on winnings from lotteries, otherwise known as the ‘betting tax.’ We will abolish the Electronic Transfer Levy (E-Levy) of 1%. We will abolish the emission levy on industries and vehicles. We will abolish the VAT on motor vehicle insurance policies. And we will abolish the 1.5% withholding tax on the sale of unprocessed gold by small-scale miners,” he stated.

    He noted that these tax removals aim to alleviate financial burdens on households while boosting business growth and improving tax compliance.

    “…the removal of these taxes will ease the burden on households and improve their disposable incomes. In addition, it will support business growth and improve tax compliance,” he added.

    So far, the government has announced the removal of six taxes: the 10% betting tax, the 1% E-Levy, the emission levy on industries, VAT on motor insurance, the 1.5% withholding tax on unprocessed gold sales, and the COVID-19 levy. These tax repeals will take effect once the 2025 budget is passed by Parliament.

    Despite the anticipated relief for individuals and businesses, some experts and analysts have raised concerns about the potential impact on Ghana’s already struggling economy. In response, the government has outlined measures to mitigate the revenue shortfall, including adjustments to the tax refund ceiling.

    “Mr. Speaker, by reducing the ceiling on the tax refund from 6% to 4%, we will save GH¢3.8 billion. This amount is enough to close the revenue shortfall from the removal of the E-Levy, amounting to GH¢1.9 billion, and the betting tax of GH¢180 million,” Dr. Forson stated.

    Meanwhile, government revenue reports indicate that by the end of 2024, approximately GH¢6.4 billion had been collected from the COVID-19 Health Recovery Levy, GH¢246.9 million from the E-Levy, and about GH¢120 million from other levies.

    The fate of the proposed tax abolitions now rests with Parliament, as the government pushes for an expedited legislative process to implement these changes.

  • Govt abolishes lottery tax, E-levy, Emission Levy, several others

    Govt abolishes lottery tax, E-levy, Emission Levy, several others

    The Mahama-led government has fulfilled its promise to remove several taxes described as “nuisance taxes” introduced by the previous Akufo-Addo administration.

    Finance Minister Cassiel Ato Forson confirmed this during his presentation of the 2025 fiscal budget in Parliament on Tuesday, March 11, 2025.

    “Mr. Speaker: We will abolish the 10% withholding tax on winnings from lottery, otherwise known as the ‘Betting Tax,’ we will abolish the Electronic Transfer Levy (E-Levy) of 1%, we will abolish the Emission Levy on industries and vehicles; we will abolish the VAT on motor vehicle insurance policy; and we will abolish the 1.5% withholding tax on winning of unprocessed gold by small-scale miners,” he said.

    He explained that removing these taxes would ease the financial burden on families and give them more disposable income. Additionally, businesses would benefit, and tax compliance would improve.

    “…the removal of these taxes will ease the burden on households and improve their disposable incomes. In addition, it will support business growth and improve tax compliance,” he added.

    From the Minister’s presentation, six taxes and levies have been scrapped so far. They include the 10% Betting Tax, the 1% E-Levy, the Emission Levy on industries, the VAT on motor insurance, the 1.5% withholding tax on unprocessed gold sales, and the COVID-19 Levy.

    However, the removal of these taxes will take full effect only if Parliament approves the 2025 budget.

    Some experts and concerned individuals have warned about the potential impact of these tax cuts on Ghana’s struggling economy. However, the government plans to adjust the ceiling on tax refunds to offset the revenue shortfall from the abolished E-Levy.

    “Mr. Speaker, by reducing the ceiling on the tax refund from 6% to 4%, we will save GH¢3.8 billion. This amount is enough to close the revenue shortfall from the removal of the E-Levy amounting to GH¢1.9 billion and the Betting Tax of GH¢180 million,” he stated.

    Meanwhile, the government collected approximately GH¢6.4 billion from the COVID-19 Health Recovery Levy, GH¢246.9 million from the E-Levy, and about GH¢120 million by the end of 2024.

  • Don’t use the back door to introduce new taxes – Gideon Boako to govt

    Don’t use the back door to introduce new taxes – Gideon Boako to govt

    Member of Parliament for Tano North, Dr. Gideon Boako, has cautioned the Mahama-led government against covertly introducing new taxes under the pretense of scrapping the electronic levy (e-levy) and betting taxes.

    His remarks follow statements made by Finance Minister-designate Dr. Cassiel Ato Forson during his parliamentary vetting on Monday, January 13. Dr. Forson announced plans to eliminate both the e-levy and betting taxes in the government’s first budget presentation.

    Reacting to this, Dr. Boako warned that such a move could create substantial revenue gaps that the government would struggle to fill. He expressed concerns that eliminating these taxes without a clear replacement strategy would be incompatible with Ghana’s commitments to the International Monetary Fund (IMF), which requires strong revenue generation to meet debt servicing obligations.

    “I think by and large, he [Ato Forson] has done his part, but unfortunately, it wasn’t enough,” Dr. Boako noted. “For instance, he was asked how he plans to make up for the revenue shortfalls from scrapping the taxes, and he said he would cut expenditure. However, cutting expenditure does not address the problem because the IMF focuses on debt service to revenue ratio, not debt service to expenditure ratio.”

    Dr. Boako argued that while reducing government spending could offer temporary fiscal relief, it would not sufficiently resolve Ghana’s need for stable revenue streams to manage debt obligations effectively.

    He further expressed concerns that the IMF’s revenue demands might eventually pressure the government to introduce alternative taxes, undermining the initial promise to eliminate the e-levy and betting taxes.

    “We don’t want a situation where you give with the right hand and take with the left hand,” he added, urging the government to prioritize transparency and sustainable revenue strategies rather than cosmetic policy shifts.

    Dr. Boako concluded by advising the government to adopt a more comprehensive and long-term approach to resolving the country’s fiscal challenges, emphasizing the importance of clear policies that do not mislead the public.

  • E-levy will be removed immediately after holistic assessment – Ato Forson

    E-levy will be removed immediately after holistic assessment – Ato Forson

    Dr. Cassiel Ato Baah Forson, the Finance Minister-designate, has reaffirmed his commitment to immediately remove the Electronic Transaction Levy (E-Levy) after a thorough evaluation.

    During his vetting with the Appointments Committee of Parliament on January 13, Dr. Forson emphasized his approach to the controversial tax.

    “Why is it always revenue and not expenditure? I think you have a choice of both. Remove the e-levy and replace it or remove e-levy, don’t replace and cut corresponding expenditure. The option is on the table,” he stated.

    Forson further assured that his stance on the E-Levy remains unchanged, saying, “As minister, I will consider the e-levy holistically and the fact that it is going and assess its impact and assess it appropriately but my commitment won’t change. E-levy has to go and it will go immediately.”

    Despite Forson’s assurances, some tax analysts have raised concerns about the potential economic consequences of abolishing the E-Levy without adequate replacements. Tax consultant Francis Timore Boi warned that removing both the E-Levy and the COVID-19 Levy, which are projected to generate GHC7.7 billion in 2025, could undermine the government’s IMF-backed fiscal strategy.

    “If any policy you seek to introduce may bring down revenue, the IMF may not be happy with that,” Boi cautioned. “You are planning to abolish the COVID-19 levy and the E-Levy. COVID-19 levy alone in 2025 is estimated to bring in about GHC5.6 billion. If you take it off, how are you going to replace it? In 2025, we are expecting E-Levy to give us about GHC2.1 billion and in 2026, it is projected to increase to about GHC2.4 billion.”

    Political Scientist Dr. Kwame Asah-Asante also advised caution, recommending that the government consider a phased reduction of the E-Levy rather than its outright removal.

  • Don’t abolish E-levy, reduce the rate – Political Scientist to govt

    Don’t abolish E-levy, reduce the rate – Political Scientist to govt

    Political Scientist Dr. Kwame Asah-Asante has advised the government against abolishing the Electronic Levy (E-Levy) and instead recommended a phased reduction of the tax rate.

    Speaking on JoyNews’ AM Show on Friday, January 10, Dr. Asah-Asante explained that while the E-Levy remains unpopular, its complete removal could jeopardize the country’s financial stability.

    “The best approach is to reduce the incidence of taxation over time, as these are the low-hanging fruits that can be effectively utilised,” he stated, suggesting that a gradual reduction would be more feasible than its outright elimination.

    Dr. Asah-Asante acknowledged the discomfort caused by the 1.5 percent levy but pointed out that it has become an essential revenue stream for the government. “We have lived with this burden, and we are moving on,” he remarked, adding that the country already faces numerous other taxes that strain the public.

    The political scientist argued that a phased reduction would make it easier for the public to comply with the levy, ultimately boosting participation and government revenue.

    Dr. Asah-Asante also emphasized the importance of generating domestic resources to fund the country’s development. “You can never build the capacity of the state without generating your own resources,” he said, stressing the need for innovation and increased reliance on internally generated funds to support long-term economic growth.

    He cautioned against excessive dependence on external funding and advocated for more sustainable approaches to financing the nation’s development needs.

  • Tsatsu Tsikata labels NPP’s introduction of E-Levy a disaster

    Tsatsu Tsikata labels NPP’s introduction of E-Levy a disaster

    Legal expert Tsatsu Tsikata has labeled the Electronic Levy (E-Levy), introduced by the current New Patriotic Party government, as a failure.

    He argued that the E-Levy has not lived up to its expectations, even suggesting that Dr. Mahamudu Bawumia, who was vice president when the policy was rolled out, now seems to be distancing himself from it.

    Tsikata shared these views during an interview on GH One on Monday, November 11, 2024.

    “E-Levy is passed and what has come of it? The E-Levy is a disaster that even the candidate of the governing party for the next presidential elections wants to stay far away from the E-Levy. According to what I’m reading, he says it will be abolished,” he said.

    The legal expert’s remarks on the E-Levy arose while discussing the Supreme Court’s involvement in the Assin North case, which centers on Gyakye Quayson’s dual citizenship and the ongoing vacant seats issue.

    He emphasized that certain court rulings negatively impact the judiciary’s reputation, weakening its credibility and authority.

    Tsikata remarked that rulings which disregard the Constitution’s provisions and principles reflect a disregard for the Constitution itself.

    In reference to the Assin North case, Tsatsu Tsikata highlighted how some individuals used the Supreme Court in the process of passing the E-Levy.

  • We’ll use our new majority numbers to scrap betting tax, e-levy – Ato Forson

    We’ll use our new majority numbers to scrap betting tax, e-levy – Ato Forson

    The National Democratic Congress (NDC) has pledged to leverage its newly declared “majority status” in Parliament to abolish controversial taxes, including the Electronic Transfer Levy (E-Levy) and betting taxes.

    At a press conference on Sunday, Minority Leader Dr. Cassiel Ato Forson announced the NDC’s intent to scrap what he called “nuisance taxes” following Speaker Alban Bagbin’s ruling that declared four parliamentary seats vacant.

    He emphasized that the NDC’s strengthened position would allow the party to introduce measures aimed at alleviating the economic burden on Ghanaians.

    Dr. Forson stated, “We will use our new majority numbers to benefit Ghanaians by introducing private members’ bills to remove the E-Levy and reduce the suffering of the people. It is also true that we will remove the betting tax and other nuisance taxes.”

    The E-Levy, implemented by the New Patriotic Party (NPP) government, has faced widespread criticism for its negative impact on businesses and transactions, while the newly introduced betting tax has particularly stirred discontent among the youth.

    Dr. Forson further condemned the NPP’s tax policies, assuring the business community and citizens that the NDC’s majority would work to protect their interests and reduce the financial strain imposed by the current tax regime.

  • E-Levy will be canceled by March 2025 – Dr Bawumia assures

    E-Levy will be canceled by March 2025 – Dr Bawumia assures

    Flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, stated that the contentious Electronic Transfer Levy (E-Levy) on mobile money transactions and other transfers will be included in his first budget submission to Parliament by March 2025.

    He mentioned that, barring any unforeseen circumstances, the E-Levy would be eliminated by the first quarter of next year under his leadership.

    Parliament passed the Electronic Transfer Levy Bill into law on Tuesday, March 29, 2022, despite opposition from the Minority Caucus in Parliament.

    The E-Levy was implemented starting May 1, 2022, which ignited widespread public debate and backlash due to the financial burden it imposed on Ghanaians.

    Many Ghanaians argued that the introduction of the E-Levy by the Akufo-Addo-Bawumia administration was counterproductive to the government’s digitalization efforts, which were led by Vice President Bawumia.

    The E-Levy has since become a focal point in political campaigns, with both the NDC and the NPP promising to abolish it if they come to power in 2025.

    In light of this, Dr. Bawumia, during a media engagement in Accra on Sunday, reaffirmed his commitment to abolishing the E-Levy if he becomes president.

    Dr. Bawumia also assured that new tax reforms, such as the flat rate and tax amnesty, would be introduced immediately as part of his plan to stimulate the growth of Ghanaian businesses and create jobs.

    He expressed confidence that these tax reforms would foster a business-friendly

  • “E Levy is working” – Nana Fredua

    “E Levy is working” – Nana Fredua

    A member of the New Patriotic Party (NPP) and Board Chairman of the National Theatre, Nana Fredua Agyeman Ofori-Atta has expressed that the Electronic Levy (E-Levy) policy introduced by the NPP is making strides in the economy.

    During an interview with Serwaa Amihere on GHOne TV, she asserted that… “The e-levy has rallied more than 1.9 billion in the last year. It’s working, and it’s not like it’s not working,” he said.

    Madam Ofori-Atta emphasized that Ghanaians should focus on the bigger picture, asking, “How do we want to develop? Do we want to develop piecemeal or holistically, with a projection into the future?” He stressed that the E-Levy is a law that has been implemented and is contributing to the economy.

    The NPP board chairman acknowledged that Ghanaians complain about various issues but urged for a more nuanced approach. “We complain, including me. All of us always find something wrong somewhere. But we know that, depending on how we see the thing, we should focus on whether the policy is working.”

    Ofori-Atta addressed concerns about the E-Levy, saying, “When the e-levy was being proposed, we were given the option of either the e-levy or we go to the IMF. And we are doing both. You don’t expect Ghanaians not to complain?” He emphasized the need to evaluate the policy’s impact and ensure that the collected resources are utilized effectively.

    The NPP leader clarified that the party is focused on the future, highlighting numerous planned developments under a Bawumia administration. He encouraged Ghanaians to consider development holistically, rather than concentrating solely on the burden of paying taxes.

    Ofori-Atta concluded, “It’s about where the resources go when it is collected, and whether it is of value to us. So, for now, it is the law. It is working. If we want to deal with it, we should find out whether the money they’ve been collecting from us has been going into the spaces it’s supposed to go into.”

  • COVID levy: Ghana the only country paying tax for a ‘dead’ pandemic – Mahama

    COVID levy: Ghana the only country paying tax for a ‘dead’ pandemic – Mahama

    Former President John Mahama has criticized the ongoing taxation in Ghana related to COVID-19, stating that the country is still burdened with taxes for a pandemic that has since passed.

    Speaking at the Mahama Youth Town hall on Monday, August 12, the National Democratic Congress (NDC) flagbearer expressed concern that Ghanaians who endured and survived the pandemic are now being unfairly taxed.

    “Ghana is the only country I know that is still being taxed for a pandemic that has passed,” Mahama remarked.

    He explained that the COVID tax, a value-added tax introduced by the government to increase revenue, remains in place despite political parties’ promises to abolish it.

    According to Mahama, the government has included the COVID tax as part of its revenue commitments to the International Monetary Fund (IMF).

    “It’s part of the IMF agreement. As part of their agreement with the IMF to increase revenue, they’ve locked COVID inside.

    “So, if you come and want to take the COVID tax out, it means you’re not fulfilling the agreement with the IMF,” Mahama noted.

    Mahama further stated that his next government would rationalize these taxes and explore other avenues for tax collection, aiming to expand the tax net and eliminate what he referred to as “obnoxious” taxes.

    “One of the taxes that is not performing is the E-Levy. They said the E-Levy would solve every problem in this country. Unfortunately, it’s not performing well,” the former president added.

    https://www.youtube.com/watch?v=LG9MNFeAlxU
  • We will remove betting tax, find alternatives – Mahama

    We will remove betting tax, find alternatives – Mahama

    Former President John Mahama has vowed to explore alternatives to the controversial betting tax as part of his election campaign strategy.

    Speaking at the NDC’s Youth Townhall Meeting in Accra, the party’s flagbearer underscored his commitment to addressing critical issues impacting Ghanaians.

    Mahama reiterated his promise to eliminate both the Electronic Levy (E-Levy) and the tax on betting winnings if he wins the upcoming election.

    He criticized the E-Levy for failing to meet revenue expectations while burdening citizens financially. His campaign pledges are part of a broader effort to tackle the country’s pressing economic challenges.

    Additionally, Mahama called for a more organized approach to exporting local talent, expressing concerns about the current exodus of professionals due to economic hardships.

  • E-levy must be removed with or without the reintroduction of road tolls – Professor Asuming

    E-levy must be removed with or without the reintroduction of road tolls – Professor Asuming

    Professor Patrick Asuming from the University of Ghana Business School (UGBS) has called for the removal of the e-levy, describing it as a detrimental tax.

    He expressed skepticism about the government’s intention to reintroduce road tolls, noting that similar promises in the past have not been fulfilled.

    Speaking on TV3’s “The Key Points” on July 27, Professor Asuming stated, “The e-levy is a bad tax that should be removed with or without the road tolls. I am very suspicious that these road tolls will be back. In 2023, they stated they were going to reintroduce some tolls that were removed, but we didn’t hear anything about it. Now you are saying this. I am not sure there is a real intention to bring back the road tolls. It was a bad idea to remove the road tolls.”

    The government ceased road toll collections in 2021 following the introduction of the e-levy, which was intended to replace the tolls.

    However, the e-levy has not met expectations, prompting the government to reconsider road tolls. The Finance Minister, Dr. Mohammed Amin Adam, announced that Cabinet has approved a framework to reintroduce tolls by 2025.

    This announcement was made during the mid-year budget review in Parliament on July 23.

    Vice President Dr. Mahamudu Bawumia, the New Patriotic Party’s (NPP) flagbearer, also emphasized the need to bring back road tolls to fund infrastructure projects.

    In June, he noted that the government lacks sufficient funding for infrastructure and suggested that road tolls could provide a necessary revenue stream.

    He remarked, “Let us go back to a system of broad-based road tolls. The tolling system has to come back, and I think it will come back. It is a fundamental mistake of the government to place all road projects on the budget. The government doesn’t have enough money and the private sector has to be brought in.”

    In summary, the government is considering the reintroduction of road tolls in 2025 due to the underperformance of the e-levy, despite past unfulfilled promises and ongoing doubts about their commitment to this plan.

  • Road tolls or no road tolls remove the “bad E-levy” tax – UGBS Professor

    Road tolls or no road tolls remove the “bad E-levy” tax – UGBS Professor

    Professor at the University of Ghana Business School, Patrick Asuming, has argued for the removal of the e-levy, regardless of whether road tolls are reinstated or not. He criticized the e-levy as a poorly conceived tax.

    Prof. Asuming also expressed skepticism about the government’s plan to reintroduce road tolls.

    He pointed out that the government has previously made similar promises to reinstate other abolished levies, which ultimately did not come to pass, leading him to doubt the current proposal.

    “The e-levy is a bad tax that should be removed with or without the road tolls. I am very suspicious that these road tolls will be back.

    In 2023 they stated that they were going to bring back some tolls that were removed but we didn’t hear anything about it. Now you are saying this.

    “I am not sure there is a real intention to bring back the road tolls. It was a bad idea to remove the road tolls,” he said on the Key Points on TV3 Saturday, July 27.

    The government is preparing to reinstate road tolls, which were discontinued in 2021. Finance Minister Dr. Mohammed Amin Adam announced that the Cabinet has approved a framework for reintroducing the tolls by 2025.

    He made this announcement during the mid-year budget review presented to Parliament on July 23.

    In June, Vice President Dr. Mahamudu Bawumia, the New Patriotic Party’s (NPP) flagbearer, advocated for the return of road tolls to enhance road infrastructure in Ghana.

    He noted that the government currently lacks sufficient funds for infrastructure projects and proposed that road tolling could be an effective solution to address this funding gap.

    “Let us go back to a system of broad-based road tolls. The tolling system has to come back, and I think it will come back.
    “It is a fundamental mistake of the government to place all road projects on the budget. The government doesn’t have enough money and the private sector has to be brought in,” he noted.

    Government canceled road toll collections in 2021 after introducing the e-levy which government said was to substitute the road tolls.
    However, the e-levy has failed to live up to its promise prompting government to bring back the tolls in 2025.

  • Value of MoMo transactions hit GHC394.2bn in two months of 2024

    Value of MoMo transactions hit GHC394.2bn in two months of 2024

    The total value of mobile money transactions for the first two months of 2024 reached a record GH¢394.2 billion, compared to GH¢264.1 billion during the same period in 2023.

    According to the March 2024 Summary of Economic and Financial Data by the Bank of Ghana, mobile money transactions in January 2024 amounted to GH¢198.4 billion, with February 2024 reaching GH¢195.8 billion.

    Despite the implementation of the Electronic Transaction Levy (E-Levy), mobile money transactions continue to thrive.

    The total number of transactions in January 2024 was 618 million, with February 2024 recording 609 million transactions. The active mobile money accounts in January 2024 were estimated at 22.9 million.

    In 2023, the total value of mobile money transactions reached a record GH¢1.912 trillion, compared to GH¢1.07 trillion in 2022.

    The data from the Bank of Ghana shows a consistent surge in mobile money transactions from January 2023 to January 2024, with a slight drop in February 2024. All 14 months recorded transactions exceeding GH¢100 billion each.

  • Wrongful E-Levy charges on some electronic transactions will be rectified – GRA

    Wrongful E-Levy charges on some electronic transactions will be rectified – GRA

    Reacting to the recent internet connectivity issues leading to wrongful charging of E-Levy on electronic transactions, the Ghana Revenue Authority (GRA) has assured the public of corrective measures.

    Acknowledging the impact of internet outages on transaction routing to the Electronic Transfer Levy Management and Assurance System (ELMAS), GRA announced steps to address the situation in a press release dated March 22.

    The key measures implemented by GRA include:

    Temporary Procedures for Delayed Transactions: GRA has established temporary procedures for processing “Offline Transactions” caused by internet outages. These procedures ensure that E-Levy is charged only on applicable transactions, even if there is a delay in real-time routing to ELMAS.

    Refunding Wrongful Charges: Recognizing that the outage may have resulted in wrongful E-Levy deductions, GRA is collaborating with Charging Entities to facilitate the reimbursement process for affected transactions. Charging Entities will be responsible for reimbursing customers for any incorrectly applied E-Levy charges once GRA completes its refund procedures.

    For further information and clarification, individuals can reach out via email to elevyinfo@qra.gov.qh.

    The GRA’s proactive steps aim to ensure a seamless E-Levy collection process and address any issues arising from the recent disruptions in internet connectivity.

    See statement below:

  • GRA to refund wrongful e-levy charges during internet disruptions

    GRA to refund wrongful e-levy charges during internet disruptions

    Following recent internet disruptions, the Ghana Revenue Authority (GRA) has addressed concerns about the inaccurate imposition of the E-Levy on certain electronic transactions.

    The GRA explained that the interruption in internet connectivity affected the real-time routing of electronic transactions to the Electronic Transfer Levy Management and Assurance System (ELMAS), prompting them to take immediate action to rectify the issue.

    To mitigate the impact of the internet outage, the GRA has implemented temporary measures known as “Offline Transactions.”

    These measures ensure that the E-Levy is applied only to eligible transactions, even if there are delays in routing due to the internet disruption.

    Additionally, the GRA is committed to correcting any wrongful charges that may have occurred during this period.

    They acknowledge that some Charging Entities may have mistakenly deducted E-Levy for transactions exempt from such charges.

    To address this, the GRA is working closely with Charging Entities to quickly identify and reimburse any incorrect deductions.

    They also stated that Charging Entities are responsible for reimbursing customers for any wrongly applied E-Levy charges, following the completion of the GRA’s refund processes.

    Through these proactive measures, the GRA aims to ensure a smooth and equitable E-Levy collection process, despite the challenges caused by internet disruptions.

  • E-levy: MoMo agents to strike over double taxation

    E-levy: MoMo agents to strike over double taxation

    The Mobile Money Advocacy Group Ghana (MOMAG) and mobile money agents have voiced their disappointment with the Ghana Revenue Authority (GRA) over the imposition of the E-levy on agent SIM cards, citing it as leading to double taxation for their businesses.

    In a statement issued on Wednesday, March 20, 2024, MOMAG stated that despite engaging with the GRA to address their concerns, no satisfactory outcome has been reached.

    The introduction of the new levy, combined with the existing 10% income tax on all transactions, is posing a threat to the financial viability of their businesses, according to MOMAG.

    “The current situation is untenable, and if not addressed promptly, we risk losing all our capital due to the heavy burden of double taxation,” the statement read.

    The Association is urging the government, especially the Ministry of Finance, and other pertinent stakeholders to step in and rectify the situation with the GRA.

    The statement, endorsed by the National Secretary, Kingsley J. Amoako-Atta, further highlighted that the imposition of the E-levy on Agent SIM cards and the 1% levy on all Push and Pull transactions from banks are placing an untenable financial strain on mobile money agents.

    MOMAG has issued a warning of potential shop closures and planned demonstrations if their grievances are not promptly resolved.

  • Minority set to furnish Parliament private member’s bill for removal of betting tax, E-levy

    Minority set to furnish Parliament private member’s bill for removal of betting tax, E-levy

    The Minority in Parliament has announced its plan to introduce a private member’s bill aimed at repealing the E-levy, emissions tax, and betting tax.

    This decision follows the recent proposal by the New Patriotic Party’s flagbearer, Dr. Mahamudu Bawumia, who promised to eliminate these taxes if elected in the 2024 polls.

    The e-levy, emissions tax, and betting tax have been subjects of debate, and the Minority intends to address them through legislative action. The bill aims to compel the government to reconsider these taxes, which are viewed as nuisance taxes.

    Dr. Cassiel Ato Forson, the Minority Leader, highlighted in his concluding remarks on the State of the Nation Address (SONA) delivered by President Akufo-Addo that these taxes impose a heavy burden on businesses in the country.

    He expressed hope that the Majority in the House, which supported Dr. Bawumia’s stance on removing the e-levy, would also support this bill.

    “The unemployment situation in our country is at a crisis point. Mr Speaker the high cost of living has become a nightmare for many people. This has significantly deteriorated during the depreciation of our currency, especially Mr Speaker food inflation.

    “Sadly a recent World Bank report on food security released on the 13th of November 2023 cited Ghana among the top five countries in the world with the highest food inflation. Many families in Ghana today cannot put food on the table,” he stated.

  • Please don’t scrap e-levy – GRA to political parties

    Please don’t scrap e-levy – GRA to political parties

    Amid promises from political parties to abolish the Electronic Transfer Levy (E-Levy) following the 2024 general elections, Charles Addae, the Assistant Commissioner of the Ghana Revenue Authority (GRA), has urged whichever party emerges victorious to retain the tax measure.

    He emphasised the importance of maintaining this revenue source to bolster the state’s finances, cautioning that its elimination could result in heightened government reliance on loans.

    Addae underscored the significance of sustaining the E-Levy in enhancing the country’s tax-to-GDP ratio and stimulating the local economy.

    He emphasised that adequate revenue is essential for effective governance and urged the government to prioritise fiscal sustainability.

    Speaking to the media on the sidelines of the Taxing Mobile Money: Lessons and Ways Forward Conference held in Accra on Wednesday, February 28, 2024, the GRA Assistant Commissioner said, “It is good that people pay tax. We are having some political talks about whether the tax may be cancelled in the future.

    “We are pleading that it is better we sustain the revenue that is coming from it. The GHC1.2 billion that was raised in 2023 helped fill some holes in the country; otherwise, we may be depending too much on loans, which is not helping the economy.”

    “My plea is that we maintain and help increase the tax on the GDP of the nation to help the development agenda of the government. Whichever government is in power needs revenue to run. Without tax revenue, the country cannot run,” he added.

    It may be remembered that Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), declared his intention on February 7, 2024, to eliminate the electronic transfer levy if he were to be elected as Ghana’s president.

    “To accomplish this, there will be no taxes on digital payments under my administration. The E-Levy will, therefore, be abolished,” Dr. Bawumia stated.

    Unfair E-Levy tax will be scrapped if I’m made president – Mahama

    John Dramani Mahama, his opponent, also pledged to abolish the E-Levy during a speech at the University of Ghana. The NDC flagbearer argued that the tax was unjust and hindered citizens from embracing a cashless society.

    “It is an inequitable tax; it’s not a fair tax It prevents people from taking advantage of our move towards a cashless society and so when NDC comes, we will remove that tax. I’ve said it bluntly,” Mahama said.

    The government introduced the E-Levy as part of its efforts to enhance domestic revenue mobilisation. In response to considerable criticism, the E-Levy tax was subsequently reduced from 1.5% to 1%.

  • GRA official highlights importance of E-Levy in tax collection

    GRA official highlights importance of E-Levy in tax collection

    Assistant Commissioner in charge of Strategy, Research, Policy, and Programmes at the Ghana Revenue Authority (GRA), Charles Addae, has emphasized the significance of the Electronic Transfer Levy (E-Levy) in bringing the informal sector into the tax net.

    Addae explained that relying solely on the formal sector for revenue generation is insufficient, prompting the introduction of the E-Levy to ensure broader participation in tax payment, especially from individuals in the informal sector.

    During an interview at the Taxing Mobile Money, Lessons, and Ways Forward Conference held in Accra on Wednesday, February 28, 2024, Addae disclosed that the government had successfully collected GH¢1.2 billion from the E-Levy, indicating the effectiveness of the tax.

    “Ghana introduced E-Levy in 2022, and we’ve had challenges implementing this tax. However, in 2022, we collected an amount of 600 million, and in 2023, we raised GH¢1.2 billion from the E-Levy,” stated Addae.

    He emphasized the need to explore new avenues to enhance tax revenue without overburdening existing taxpayers, highlighting the importance of tapping into the informal sector to bolster revenue collection.

    “The formal system has depended on existing businesses and employees in raising national revenue. There is a need to go into the informal sector to raise revenue to support the country,” he added.

    The Taxing Mobile Money conference, organized by the International Centre for Tax and Development in collaboration with the Ghana Revenue Authority, provided a platform to discuss strategies for improving domestic revenue mobilization.

    The introduction of the E-Levy forms part of the government’s efforts to enhance domestic revenue mobilization. Following public criticism, the E-Levy tax was revised downward from 1.5% to 1%, demonstrating responsiveness to stakeholder concerns.

  • Wasn’t e-levy introduced to help govt generate revenue, what went wrong? – Student quizzes Bawumia

    Wasn’t e-levy introduced to help govt generate revenue, what went wrong? – Student quizzes Bawumia

    A student at the University of Media, Arts and Communication (UNIMAC) has challenged Vice President Dr. Mahamudu Bawumia’s commitment to eliminating the Electronic Transfer Levy (E-Levy) once he assumes the presidency of Ghana.

    In an interview with TV3, the UNIMAC student expressed skepticism about Bawumia’s decision to reverse an initiative introduced by his own government, questioning his credibility.

    The student believes that Bawumia’s stance portrays Ghanaians as easily manipulated individuals.

    “E-levy he bought himself scraping it off as in how? I mean sometimes they say things that they think that the youth are foolish, I don’t know if I can use the word. For me I think it doesn’t make sense. Scrapping it, he brought it, you are taking us on a path that you think is leading us on the right place and at the end of the day you are blacking us off telling us you will scrap it. Are you lying to us? I mean everyone knows what he is saying doesn’t make sense,” he added.

    The E-levy, introduced by the Akufo-Addo-led administration in the 2022 Budget, targets basic digital payments and electronic platform transactions exceeding GH¢100 daily.

    It’s crucial to distinguish this levy from the 1 percent charge imposed by telecommunication companies on transactions.

    Upon its inclusion in the 2022 Budget statement, the E-levy stirred controversy, raising concerns about potential double taxation and its impact on the economic challenges faced by ordinary Ghanaians.

    Critics argue that the levy could disproportionately affect low-income earners who heavily rely on daily mobile money transfers for their livelihoods.

    On February 7, 2024, Dr. Bawumia declared his intention to abolish the tax on electronic financial transactions, emphasizing its role in achieving a digital and cashless economy.

    “To transition to a cashless economy, we need to encourage the use of electronic payment channels. To facilitate this, there will be no taxes on digital payments under my administration. Therefore, the e-levy will be abolished,” he added. 

    Dr. Bawumia also outlined plans to eliminate the emission tax, betting tax, and the proposed 15% VAT on electricity tariffs.

    He further announced the introduction of a straightforward and business-friendly flat tax regime in Ghana, with a focus on providing support to individuals and businesses, particularly small and medium-scale enterprises (SMEs).

    “My administration will implement a straightforward, citizen- and business-friendly flat tax regime.” 

    “This will involve a flat tax percentage of income for individuals and SMEs, which represent 98% of all businesses in Ghana, with appropriate exemption thresholds to safeguard the poor.” 

  • We supported YouStart with funds generated from E-levy – John Kumah

    We supported YouStart with funds generated from E-levy – John Kumah

    Deputy Minister of Finance, Dr John Kumah, has revealed that the parts of revenue generated from the Electronic Transfer Levy (E-Levy) was used to support the YouStart initiative. 

    He indicated that this move was part of efforts to curb the high unemployment rate in the country. 

    Speaking at the launch of the Wealth and Jobs Expo Ghana, in response to data from the Ghana Statistical Service suggesting that about 1.5 million Ghanaian youth are unemployed, Mr Kumah asserted that, “The Ghana Statistical Service on Wednesday announced that about 1.5 million Ghanaian youth are unemployed.

    “Last year, E-Levy generated GHS 1.19 billion, and as part of dealing with the job situation… unemployment situation, the government has committed funds through YouStart from these E-Levy sources…to GEA and NEIP to address the unemployment situation in the country.”

    He noted that the government allocated funds to its YouStart, National Entrepreneurship and Innovation Programme (NEIP) and Ghana Enterprise Agency to create more jobs for the teeming unemployed youth in the country.

    Additionally he said, “I am happy to announce that institutions like Wealth and Jobs Expo and all private groups that are willing to help create jobs in the private sector will also be supported to help create jobs and businesses in the private sector.”

    Dr Kumah noted that the government, in the medium term, aims to intensify efforts to attract domestic investments and Foreign Direct Investments with an emphasis on creating jobs anchored on the government’s growth strategy.

    He indicated that the strategy is projected to contribute approximately 500,000 jobs.

    “Even if we get it, we get 10% of them, it’s 150,000 who will become entrepreneurs. If they do an average of, let’s say, 100 jobs….150,000 x 100, you have almost solved the unemployment problem,” Dr John Kumah stated.

  • Govt earned GH¢1.19 billion from e-levy in 2023 – Deputy Finance Minister

    Govt earned GH¢1.19 billion from e-levy in 2023 – Deputy Finance Minister

    Deputy Minister of Finance, Dr. John Kumah, revealed that the government amassed a total of GH¢1.19 billion in revenue from the E-levy for the year 2023.

    He made this revelation during the media launch of the Wealth and Jobs Expo Ghana.

    This significant sum was strategically allocated to various initiatives aimed at addressing unemployment in the country.

    Dr. John Kumah emphasised that, in light of recent statistics from the Ghana Statistical Service, which indicated that over a million Ghanaian youth were unemployed, it was imperative to allocate resources effectively.

    Therefore, funds were channelled into key programs such as the YouStart Program, the Ghana Enterprise Agency, and the National Entrepreneurship and Innovation Programme.

    These initiatives are poised to combat unemployment by fostering entrepreneurship and providing support for job creation across different sectors of the economy.

    “The Ghana Statistical Service announced on Wednesday that about 1.5 million Ghanaian youth are unemployed. Last year, the E-levy generated GH¢1.19 billion and as part of dealing with the job situation… unemployment situation, the government has committed funds through YouStart from these E-levy sources… to GEA and NEIP to address the unemployment situation in the country, and I am happy to announce that institutions like Wealth and Jobs Expo and all private groups that are willing to help create jobs in the private sector will also be supported to help create jobs and businesses in the private sector,” he said.


    Dr. John Kumah underscored the government’s endeavours to draw investments into the nation, while simultaneously stimulating job growth. He stressed the importance of fostering belief in entrepreneurship as a crucial measure to tackle the unemployment rate.

    “In the medium term, the government aims to intensify efforts to attract domestic investments and FDIs [Foreign Direct Investments] in strategic centres, with an emphasis on creating jobs anchored on the government’s growth strategy. The strategy is projected to contribute to the creation of approximately 500,000 jobs.

    We are not saying there are 1.5 million [unemployed youth; every one of them should create jobs. No. Even if we get it, we get 10% of them, it’s 150,000 who will become entrepreneurs. If they do an average of, let’s say, 100 jobs… 150,000 x 100, you have almost solved the unemployment problem,” the Deputy Minister of Finance added.

  • Importers and Exporters Association of Ghana disappointed in Bawumia’s vision for Ghana  

    Importers and Exporters Association of Ghana disappointed in Bawumia’s vision for Ghana  

    Executive Secretary of the Importers and Exporters Association of Ghana, Samson Asaki-Awingobit, has voiced disappointment over Vice President Dr Mahamudu Bawumia’s recent vision statement, labeling it as a regurgitation of unmet assurances.

    In his address to the nation on Wednesday, February 7, as the presidential candidate of the New Patriotic Party (NPP), Dr Bawumia outlined a series of policies aimed at leveraging technology and private sector collaboration to foster sustainable job creation, revenue generation, and propel Ghana into the modern global economy. 

    Additionally, he pledged to abolish the controversial E-Levy and align port charges with Togo to combat smuggling.

    However, Asaki-Awingobit contends that while the outlined policies were commendable, they lacked innovation, merely echoing promises previously made by the government but left unfulfilled.

    In an interview with Rainbowradioonline.com, Asaki-Awingobit emphasized the necessity for a social contract with Dr Bawumia and other political candidates, emphasizing the need for accountability should they be elected to office.

    “The promise to introduce a system where businesses would be audited not more than once; the policy to use the Ghana Card to acquire a passport, and the others are all good, but we would have to sign a social contract with him and ensure that we hold him to account on these promises if he is elected as president,” remarked Asaki-Awingobit.

    He further underscored the importance of scrutinizing all political parties’ manifestos and committing to hold elected officials accountable for their pledges.

    As Ghana approaches its upcoming elections, the sentiments expressed by Asaki-Awingobit highlight the electorate’s demand for substantive policy proposals and a renewed focus on accountability and transparency in governance.

  • Former Forestry Commission official urges President Akufo-Addo to scrap E-Levy

    Former Forestry Commission official urges President Akufo-Addo to scrap E-Levy

    Former Head of the Monitoring Unit at the Forestry Commission, Charles Owusu, has called on President Nana Addo Dankwa Akufo-Addo to heed Vice President Dr Mahamudu Bawumia’s pledge to abolish certain taxes, including the controversial E-Levy.

    Speaking on a panel discussion on Peace FM’s Kokrokoo on February 9, 2024, Owusu emphasized the importance of scrapping the E-Levy to bolster the New Patriotic Party’s (NPP) prospects in the upcoming 2024 elections. He highlighted Dr Bawumia’s commitment to repealing the levy during his administration and urged President Akufo-Addo to support this initiative.

    Owusu stressed that while not all of Dr Bawumia’s decisions may align with those of President Akufo-Addo, the government had an opportunity to demonstrate unity and solidarity by addressing the concerns raised by the Vice President, particularly regarding the E-Levy.

    “I have heard people talking about him denying his government. All of us are not the same on this earth; definitely, if he becomes a leader, not all his dealings will be exactly like Akufo-Addo. But I feel this government has the opportunity to help Bawumia,” Owusu asserted.

    He further emphasized the government’s capacity to fulfill Dr. Bawumia’s promise by taking decisive action to remove or cancel the E-Levy. Owusu urged swift action, suggesting that scrapping the levy would demonstrate the party’s commitment to continuity in government and resonate positively with voters.

    “If there are things that he has complained about, then why doesn’t the government take them out or cancel them? Bawumia has talked about the E-Levy, so if the party wants continuity in government, why can’t they scrap it? I believe they can scrap it, and they should do it now,” Owusu urged.

  • NDC’s Brogya Genfi and NPP’s Jennifer Queen clash over E-levy on live TV

    NDC’s Brogya Genfi and NPP’s Jennifer Queen clash over E-levy on live TV

    The airwaves crackled with tension on the February 8, 2024 episode of UTV’s “Adekye Nsroma” as Ernest Yaw Brogya Genfi of the National Democratic Congress (NDC) and Jennifer Queen from the New Patriotic Party (NPP) locked horns in a fiery exchange over Vice President Mahamudu Bawumia’s recent promise to abolish taxes, including the contentious E-Levy.

    The disagreement escalated quickly, with Brogya Genfi launching accusations at the Nana Addo Dankwa Akufo-Addo-led administration, branding it as “wicked” for imposing burdensome taxes on Ghanaians. He suggested that Bawumia’s pledge to eliminate such levies implied an acknowledgment of the government’s failure to address the tax burden effectively.

    However, Jennifer Queen vehemently contested Brogya Genfi’s assertions, accusing him of misrepresenting Bawumia’s statements and refuting claims that the Vice President had labeled President Akufo-Addo as “wicked” for implementing the E-Levy.

    The exchange intensified as Brogya Genfi stood firm on his interpretation, quoting Bawumia’s words from a February 7 lecture where the Vice President purportedly indicated plans to abolish the E-Levy during his administration. Brogya Genfi inferred from the statement that Bawumia indirectly criticized President Akufo-Addo‘s administration for introducing the controversial levy.

    In response, Jennifer Queen dismissed Brogya Genfi’s interpretation as “mischievous” and emphasized that Bawumia never directly accused his boss of being “wicked.” She reiterated Bawumia’s commitment to abolishing the E-Levy during his presidency without attributing blame to the current administration.

    The verbal sparring continued with both sides staunchly defending their positions. Brogya Genfi insisted on his reading of Bawumia’s remarks, highlighting the discrepancy between the Vice President’s promise and the ongoing enforcement of the E-Levy under President Akufo-Addo’s tenure.

    As tensions reached a crescendo, Queen and Genfi traded barbs, with each attempting to assert their narrative over the other. Despite attempts at moderation, the clash persisted until the end of the segment, leaving viewers with a stark portrayal of the political divide surrounding taxation policies in Ghana.

  • You fought us over baseless e-levy only for Bawumia to scrap it – Sam George to NPP MPs

    You fought us over baseless e-levy only for Bawumia to scrap it – Sam George to NPP MPs

    The Member of Parliament for Ningo Prampram, Samuel Nartey George, has criticized Vice President Dr. Mahamudu Bawumia‘s pledge to abolish the E-levy, equating it to a deceptive move aimed at NPP MPs who previously supported the tax implementation.

    In a post on his X platform dated February 8, 2024, Sam George questioned the sentiments of the NPP MPs who enthusiastically applauded Bawumia’s announcement, highlighting the apparent contradiction in their positions.

    Expressing skepticism, Sam George noted that Bawumia’s statement essentially implied that the MPs lacked foresight in their support for the E-levy, dismissing their arguments and debates as baseless.

    “I have a question to ask my Colleague NPP MPs who were sitting in the UPSA Hall yesterday and clapping vigorously for the comical performance of Dr @MBawumia. How do you all feel after fighting the NDC MPs and walking out and insulting us over the e-Levy?

    “Now Bawumia says you all are short-sighted and not critical in your thinking and analysis. He says your arguments and debates in favour of e-Levy are all bogus and useless. And you were clapping yesterday? Or you were not paying attention? Like I am trying to understand how you must be feeling. Anyway, Ken Ofori-Atta is still Finance Minister after all your complaints. We move,” he added.

    He specifically addressed the NPP MPs who had vehemently supported the tax, asking how they felt now that their candidate proposed its cancellation.

    Despite their complaints about Finance Minister Ken Ofori-Atta, Sam George concluded his post with a nonchalant “We move.”

    “To move towards a cashless economy, however, we have to encourage the population to use electronic channels of payment. To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will, therefore, be abolished,” he said at the UPSA auditorium on February 7.

    Dr. Bawumia, who serves as both Vice President and the NPP’s flagbearer, had announced during a manifesto delivery at the UPSA auditorium on February 7 that, if elected President, he would eliminate the E-levy as part of a broader strategy to promote a cashless economy.

  • Don’t trust Bawumia, he can’t scrap e-levy – Economist

    Don’t trust Bawumia, he can’t scrap e-levy – Economist

    Economist Professor John Gatsi expressed skepticism regarding the feasibility of the New Patriotic Party’s (NPP) flagbearer, Dr. Mahamudu Bawumia, fulfilling his promise to eliminate the electronic financial transactions tax, known as the e-levy, along with four other taxes if elected as Ghana’s president.

    Dr. Bawumia had committed to scrapping the e-levy and other taxes to promote the use of electronic payment channels.

    Professor Gatsi countered this proposal, highlighting the challenge of implementation, given that the e-levy was introduced by the government to generate revenue, aligning with International Monetary Fund (IMF) requirements for an extended credit facility.

    According to Professor Gatsi, Dr. Bawumia’s pledge is perceived as a political strategy aimed at enhancing his appeal to voters in the upcoming general elections.

    The economist asserted that such a commitment would be impractical for the NPP’s flagbearer to fulfill if elected as president.

    “I believe that all these discussions are going to be centered on 2025, and it is just a political strategy to make Bawumia look good for the election because you have already created a revenue stream for this government, and the IMF program will not end in 2025. So, to say, you need the same level of revenue to sustain the program. I don’t understand how you will be able to take one revenue source from the kitty and remain sustainable in the eyes of the IMF.”

    “What Bawumia should be saying is that he will propose taxes A or B to replace the e-levy. If that is not what he is saying, then it is not something he can do, especially under the IMF programme.”

  • Picture of Samira Bawumia in front of a green and white-designed e-levy cake was doctored – Checks reveal

    Picture of Samira Bawumia in front of a green and white-designed e-levy cake was doctored – Checks reveal

    Shortly after Vice President Mahamudu Bawumia pledged to eliminate several taxes if elected president in 2025, a photo featuring his wife, Samira, began circulating widely.

    The image depicted the Second Lady alongside another woman at an evening event, with a green cake adorned with the words “E-Levy.”

    The Electronic Transactions Levy (E-Levy), a contentious tax introduced in 2022, was among the levies Bawumia vowed to abolish during his lecture titled “Ghana’s Next Chapter,” held at the UPSA Auditorium in Accra on February 7, 2024.

    However, reports from GhanaWeb’s investigations revealed that the specific photo of Samira with the E-Levy cake had been digitally altered, as the cake had been superimposed onto the original picture shared in February 2022.

    The original photograph was captured at the birthday celebration of Majority Leader Osei Kyei-Mensah-Bonsu, attended by Bawumia and other prominent members of the New Patriotic Party.

    Further checks on social media, particularly X (formerly Twitter), indicated that the individuals circulating the manipulated photo were predominantly affiliated with the opposition National Democratic Congress (NDC).

    The NDC has strongly criticised Bawumia’s stance on these taxes, which were often met with staunch opposition from both the opposition party and the general public.

    Abolition of three taxes

    He said, “Taxes on gambling will be scrapped under my administration. There will be no emissions tax under my administration. 15% tax on electricity will be abolished by 2025 if it’s still under our administration.”

    See the original and doctored photos below:

  • Flashback: Video of MPs fighting during passage of E-levy resurfaces after Dr Bawumia’s promise to scrap it

    Flashback: Video of MPs fighting during passage of E-levy resurfaces after Dr Bawumia’s promise to scrap it

    An old video from the tumultuous passage of the levy has resurfaced online following Vice President Dr Mahamudu Bawumia‘s recent pledge to abolish the controversial levy.  

    Members of Parliament on the said day were engaged in a fistfight following a disagreement during the voting on the government’s E-levy bill.

    The fight ensued when the MPs were voting in a headcount to decide whether the E-levy bill should be accepted under a certificate of urgency.

    The footage, captured during the parliamentary session, depicts a chaotic scene as Members of Parliament engaged in a physical fight. The resurfacing of this video comes shortly after Dr Bawumia’s announcement that, if elected president, he intends to scrap the contentious tax, among others.

    The video, now serving as a stark reminder of the heated exchanges and discord that surrounded the introduction of the E-levy, has left Ghanaians questioning the essence of the levy and all the controversy that surrounded its passage.

    At the time, the levy faced fierce opposition from various quarters, especially the Minority in Parliament, with critics arguing that it would place undue financial burdens on already struggling citizens.

    Dr. Bawumia’s promise to eliminate the E-levy, along with other taxes, has elicited mixed reactions from the public. 

    While some have welcomed the move as a step towards alleviating the financial strain on ordinary Ghanaians, others remain skeptical about the feasibility and implications of such a decision.

  • Bawumia’s address gave me a good sleep – Economist

    Bawumia’s address gave me a good sleep – Economist


    Economist Dr. Adu Owusu Sarkodie has expressed satisfaction with a speech by New Patriotic Party (NPP) flagbearer Dr. Mahamudu Bawumia, stating that it left him feeling well-rested.

    In an interview on Adom FM’s morning show, Dwaso Nsem Thursday, Dr. Sarkodie acknowledged Bawumia‘s digitization initiatives as a positive step forward, emphasizing that the presented ideas weren’t new to experts like him who had extensively discussed tax-related matters.

    “I slept well after listening to Bawumia. He shouldn’t be blamed for everything” he said in an interview on Adom FM’s morning show, Dwaso Nsem Thursday.

    In the address titled ‘Bawumia Speaks,’ the Vice President pledged to remove certain tax policies, including the controversial E-Levy, Emission Tax, and the 15% VAT on electricity.

    While some praise these commitments, skeptics question why these taxes are proposed for removal when implemented by President Nana Addo Dankwa Akufo-Addo.

    As an economist, Dr. Sarkodie believes Dr. Bawumia is prepared to address tax regimes to prevent adverse effects on the economy.

    He considers the Vice President’s decision to abolish the E-Levy and other taxes, if elected President, as a divine blessing and commends Bawumia’s vision for a modern system. Dr. Sarkodie reiterates that the proposed tax regime reforms will contribute to economic recovery.

  • I will abolish E-levy – Bawumia

    I will abolish E-levy – Bawumia

    In a bold declaration, Vice President Dr. Mahamudu Bawumia has announced his intention to abolish the Electronic Transfer Levy (E-levy) if elected President.

    Addressing the nation at the University of Professional Studies (UPSA) in Accra today, the Vice President noted that the removal of the levy will aid government’s cashless economy agenda.

    “To move towards a cashless economy however, we have to encourage the population to use electronic channels of payment. To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will therefore be abolished.

    This announcement comes in the wake of the enactment of the Electronic Transfer Levy Act, 2022, by the Parliament of Ghana.

    The Electronic Transfer Levy Act, 2022, was passed with the aim of regulating and imposing a levy on all electronically transferred monies in Ghana.

    This move was part of the government’s efforts to broaden the country’s tax base and increase revenue mobilization. Initially, the levy was set at 1.50% on all electronic transfers, but following criticism from the Minority in Parliament and the general public, the government revised the rate to 1 percent.

    Despite the adjustment, Vice President Bawumia has made it clear that he is committed to abolishing the E-levy altogether if he assumes the presidency.

    This declaration echoes similar promises made by the flagbearer of the National Democratic Congress (NDC), John Mahama, who has also pledged to abolish the 1% Electronic Levy if elected.

    Speaking at the 75th New Year school event at the University of Ghana, he reiterated the levy was a burden.

    “This is an inequitable tax, it’s not fair and prevents people from the uptake of moving towards a cashless society and so when NDC comes we would remove that tax,” he said.

    With both major political parties vying for the support of the Ghanaian electorate, the issue of the E-levy is expected to feature prominently in the upcoming presidential election.

    Voters will likely weigh the promises of each candidate regarding taxation and economic policies as they decide who to support in the polls.

  • Alan Kyerematen vows to scrap E-Levy if elected President

    Alan Kyerematen vows to scrap E-Levy if elected President

    Leader of the Movement for Change and a 2024 Independent Presidential aspirant, Alan John Kwadwo Kyerematen, has made a bold pledge to abolish the controversial Electronic Transaction Levy (E-Levy) if he assumes office as President of Ghana.

    Kyerematen’s commitment to scrapping the E-Levy was announced during his appearance on Asempa FM’s political talk show “Ɛkosii Sɛn” on Tuesday afternoon, February 6, 2024. He emphasized the detrimental impact of the E-Levy on the Ghanaian populace and stressed the importance of encouraging electronic transactions for economic growth.

    The E-Levy, a proposed tax on electronic transactions, has faced significant opposition from various quarters since its introduction. Critics argue that it would impose a heavy financial burden on citizens and hinder financial inclusion, particularly among marginalized communities.

    In contrast, Kyerematen asserted that abolishing the E-Levy would promote electronic transactions and stimulate economic activity. He emphasized the need to prioritize policies that foster economic growth and improve the welfare of Ghanaians.

    Kyerematen’s pledge to abolish the E-Levy aligns with his broader vision of economic reform and development.

    As a presidential aspirant, he has been actively engaged in proposing some solutions to address the country’s economic challenges. In line with this, the leader of the Movement for Change has put forward 152 practical solutions he believes can transform Ghana’s current economic woes. 

    These solutions, formulated by a team of experts assembled by Kyerematen, were unveiled at the National Economic Summit organized by his movement.

    The proposed solutions cover four key areas identified under the Economic Cluster, focusing on macroeconomy, industrial transformation, agricultural transformation, and tourism. 

    Kyerematen expressed confidence that these initiatives would instill hope among Ghanaians and alleviate the prevailing hardships.

    Drawing a contrast with the approach of Vice President Dr. Mahamudu Bawumia during his tenure as running mate in the opposition, Kyerematen emphasized his commitment to providing solutions rather than merely raising questions. He highlighted the need for proactive measures to address the country’s pressing issues, underlining his readiness to collaborate with the government in implementing these solutions.

    Speaking on Asempa FM’s political talk show “Ɛkosii Sɛn,” Kyerematen elaborated further on the proposed solutions. He also pledged to abolish the controversial electronic transaction levy (e-levy) if elected as President. Kyerematen criticized the e-levy, describing it as detrimental to the welfare of Ghanaians and arguing that its abolition would promote electronic transactions and stimulate economic growth.

    Kyerematen’s stance on the e-levy aligns with his broader vision of fostering economic development and prosperity in Ghana. With his comprehensive set of solutions and commitment to addressing pressing economic challenges, Kyerematen aims to offer a viable path forward for the country’s economic recovery and growth.

  • E-levy should not apply to bank transfers linked to MoMo wallets – GRA 

    E-levy should not apply to bank transfers linked to MoMo wallets – GRA 

    The Ghana Revenue Authority (GRA) has restated its stance on Electronic Transaction Levy (E-Levy) charges, specifically addressing concerns related to transactions between bank accounts and mobile money wallets.

    The GRA emphasized that transactions involving bank accounts directly linked to mobile money wallets should not incur any E-Levy charges.This clarification was prompted by inquiries from users who sought clarity on recent deductions reported on social media platforms.

    In response, the GRA made it clear that any fees associated with these kinds of transactions are the result of charging entities’ mistakes.

    The user questioned “Are taxes imposed on the transfer of monies from bank accounts to linked momo numbers a directive from your office? @Ghana Revenue.”

    In response, the GRA made it clear that any fees associated with these kinds of transactions are the result of charging entities’ mistakes.

    Since the laws pertaining to the E-levy have not changed, the GRA emphasized that these charges are unlawful.

    “No, please. It is an error on the part of the charging entities. The law has not changed. Transfers between accounts owned by the same person should not attract the E-levy,” the GRA said in its Twitter reply.

  • Telecos Chamber calls on govt to increase withdrawal charges, reduce e-levy

    Telecos Chamber calls on govt to increase withdrawal charges, reduce e-levy

    Ghana Chamber of Telecommunications (GCT) has urged the government to reduce the Electronic Transfer Levy (E-levy) from 1% to 0.5% while simultaneously introducing a 0.5% levy on cash-outs.

    This recommendation is made to align the policy with Ghana’s digital-first strategy, emphasising the need for a balanced approach to support the country’s digital initiatives.

    “Our recommendation to the Ministry of Finance is to consider reducing the levy on transfers to 0.5% and introducing a 0.5% levy on cash-outs, among other proposals,” the Chamber added in a statement.

    Despite facing initial challenges, the Electronic Transfer Levy (E-levy) has proven to be a significant revenue generator for the government, amassing GH¢482.8 million out of the targeted GH¢6.9 billion.

    The Ghana Chamber of Telecommunications (GCT) advocates for further adjustments to enhance digital payments and align with the government’s digital transformation objectives.

    The GCT’s 2022 Mobile Industry Transparency Initiative report, unveiled on November 21, 2023, in Accra, sheds light on the telecommunications industry’s substantial contributions to Ghana’s economy.

    According to Ing. Dr. Kenneth Ashigbey, the CEO of the GCT, the industry’s tax and payment contributions exceeded GH¢6 billion in 2022, marking a 50% increase from GH¢4 billion in 2021.

    This financial input accounts for approximately 8.02% of the government’s 2022 tax revenue, as outlined in the Ghana Revenue Authority’s 2022 annual report.

    The report further reveals that the telecommunications industry directly employs over 2,600 individuals and indirectly supports the creation of more than 1.2 million jobs, including over 505,000 active Mobile Money Agents.

    These findings underscore the sector’s vital role in Ghana’s development and economic landscape.

  • E-levy revenue target deviated by 58% – ISSER

    E-levy revenue target deviated by 58% – ISSER

    Director of the Institute of Statistical, Social, and Economic Research (ISSER), Professor Peter Quartey, has disclosed a significant 58% deviation from the revenue targets of the E-levy.

    This revelation During a pre-budget conversation on Joy FM’s Super Morning Show, comes after ISSER’s recent report on the Ghanaian economy, released on October 31, 2023, which examined the efficacy of the E-levy and raised questions about the optimal tax rate for digital transactions.

    The report highlighted that the adjustment of the E-levy rate from 1.5% to 1% in January 2023 initially led to a decline in the usage of alternative payment systems. However, the figures rebounded sharply in February, suggesting a potentially short-lived impact of the rate adjustment.

    Concerns were raised about whether the current E-levy rate is optimal, given the fluctuating patterns observed in alternative payment systems. The ISSER report, extending its analysis beyond Ghana, emphasized that in various countries studied, anticipated revenues from taxes did not materialize, underscoring the need for optimizing tax rates.

    The report serves as a vital resource for policymakers, urging a reconsideration of the E-levy rate to strike a balance between revenue generation and sustaining consumer engagement in taxable transactions.

    Professor Quartey expressed discomfort with the lack of real-time data, hindering academics’ ability to make informed suggestions for effective policy implementation. This highlights the challenges in navigating the evolving landscape of digital taxation and underscores the pressing need for timely and accurate data to inform policy decisions.

  • E-levy forced 1 million Ghanaians to render their mobile money inactive – ISSER

    E-levy forced 1 million Ghanaians to render their mobile money inactive – ISSER

    A research study conducted by the Institute of Statistical, Social and Economic Research (ISSER) has revealed that approximately one million mobile money accounts became inactive following the implementation of the Electronic Transfer Levy (E-levy) in May 2022.

    This resulted in a decline in the total number of accounts, reducing from 19.1 million to 18.1 million by July 2022.

    According to ISSER’s review, the number of registered and active accounts and agents continued to rise in January 2023, although the number of active accounts dropped by 100,000 in February 2023.

    Between March and April 2022, there was a decrease of 10 million in the total number of transactions, and the total value dropped by GH¢2.8 billion. Likewise, between April 2022 and May 2022, the total number of transactions fell by 21 million, and the total value decreased by GH¢16.3 billion.

    During June 2022, there was a reduction in the total number of transactions, followed by a period of recovery between July 2022 and November 2022. Ghanaians quickly turned to alternative payment systems when the E-levy was introduced.

    Furthermore, ISSER reported that initially, less than 7% of the target revenue was realized, with only ¢93 million out of GH¢1.4 billion raised. Interestingly, upon the announcement of the E-levy, there was an increase in the usage of alternate payment systems, such as GHIPPS instant pay, cheques cleared, and internet banking.

    After the E-levy rate was adjusted to 1%, ISSER noted a drop in the usage of alternate payment systems. However, these figures increased again in February 2023, indicating that the effect of the revision was short-lived.

    In conclusion, ISSER observed that the E-levy failed to generate the expected revenue. Furthermore, it emphasized the significance of the tax rate, suggesting that even marginal reductions (e.g., 0.5%) could influence the acceptance or rejection of a tax policy by stakeholders.

  • Gov’t to introduce a ‘new E-levy’

    Gov’t to introduce a ‘new E-levy’

    Government has unveiled a comprehensive plan to revamp the Electronic Transfer Levy as a crucial component of its Medium Term Revenue Strategy.

    This initiative highlights a dedicated effort to modernise and enhance this taxation policy, bolstering its efficiency and effectiveness.

    In May 2022, the introduction of the e-levy – a tax on mobile money transactions that drew widespread criticism – imposed a 1.5% charge on all electronic and mobile money transactions exceeding GH¢100 per day. Its primary goal was to boost government revenue by securing larger tax contributions from Ghana’s informal sector.

    Then, in January 2023, the government lowered the tax rate from 1.5% to 1%. However, the notable feature of the levy – an exemption threshold for transactions below GH¢100 per day – still stands, even though its actual value has eroded due to inflation over the past year.

    The impact of this levy on Ghana’s public finances, its marginalized communities, and mobile money usage has sparked intense and divisive public debates, often devoid of empirical evidence.

    This comprehensive restructuring of the Electronic Transfer Levy might represent a progressive stance on digital-age taxation. 

    Crucially, it resonates with the government’s wider strategy to modernise its revenue collection techniques whilst ensuring a fair distribution of the tax load across varied economic sectors.

    Additionally, the medium-term revenue strategy details the subsequent reforms:

    Firstly, there are plans to broaden the withholding tax system, covering an array of tax categories. This measure seeks to improve taxpayer identification, make tax collection more efficient, and simplify the filing procedures, especially for incomes in the informal sector.

    Secondly, the strategy includes provisions to streamline tax returns and closely examine the updated taxation framework, all geared towards curbing tax evasion and fostering voluntary compliance.

    A key aspect of the strategy involves a thorough examination of archaic tax classifications, such as stamp duty, income tax stamp, and vehicle income tax. The aim is to align them with current market trends.

    Furthermore, the strategy aspires to amplify the taxation of rental income, ensuring a fairer contribution from this domain.

    Lastly, the strategy includes the adoption of taxation on Gross Gaming Revenue (GGR) for industry stakeholders and the introduction of withholding tax on winnings, signifying a considerable move towards a more inclusive and balanced tax system.

  • There is no E-levy or MoMo charges with our cashless system – ECG

    There is no E-levy or MoMo charges with our cashless system – ECG

    The Electricity Company of Ghana (ECG) has clarified that utilizing the ECG PowerApp for transactions will not result in additional charges.

    According to Mr. Benjamin Obeng Antwi, the Volta Regional Public Relations Officer (PRO), customers will not be subject to mobile money transaction fees or the E-Levy when making payments for services through this digital platform.

    Mr. Antwi conveyed this information during a stakeholder engagement session that included members of the Akatsi North District Assembly, heads of security agencies, and various departments.

    Earlier on May 11, 2023, the power distributor announced its transition to a cashless system, an enhancement to the ECG PowerApp aimed at enhancing convenience for customers and streamlining operations.

    As part of their endeavor to facilitate easy navigation of the app and encourage more customers to adopt digital transactions, the power distributor launched an educational campaign in the Volta Region.

    The objective was to equip the public, especially assembly members, with knowledge to act as advocates for the power distribution company. These ambassadors would then educate residents within their respective electoral areas about ECG’s operations.

    This educational campaign involved activities such as radio programs, interactions with institutions like the Bank of Ghana, GCB Bank, NPA, NCA, Volta Serene Hotel, and various tertiary institutions.

    Mr. Antwi highlighted that the ECG PowerApp serves multiple purposes, allowing customers to pay bills, access billing statements, view payment history, and facilitating smart prepaid meter customers in the Volta Region to purchase prepaid credits and review their usage history.

    Furthermore, he underscored that employing the ECG PowerApp or the provided short code, *226#, for transactions does not incur mobile money charges or E-Levy fees. He encouraged customers to readily embrace this cashless system for their transactions.

    “After downloading the app, once you key in your meter or account number, your details will pop up and once you are certain those details are yours, click on the correct button to save your meter and follow the prompts”, he said.

    Mr. Antwi called on the general public to assist the company root out people consuming power illegally and ensure they pay for electricity consumed.

    “Some users of electricity in our communities are not paying bills in the ECG system as a result of obtaining meters through illegal sources or faulty meters, so let’s try and report these people or else we will be paying for power consumed whiles they consume for free,” he said.

    He further advised the assembly members to ensure customers not paying for electricity consumed or not receiving bills since the installation of the meter visit the nearest ECG Office with their Ghana Card, digital address, meter number, and a picture of their meter to regularize their supply.