Parliament has repealed the Electronic Transaction Levy (E-Levy), marking a major shift in Ghana’s digital taxation policy. The repeal follows the passage of the Electronic Transaction Levy (Repeal) Bill, 2025, on March 26, 2025.
Introduced in March 2022 under the Akufo-Addo administration, the E-Levy imposed a 1.5% charge on electronic transactions, later reduced to 1% in 2023 due to public backlash. Finance Minister Dr. Cassiel Ato Forson announced in the 2025 Budget Statement that the government planned to abolish the levy along with other taxes, including the 10% betting tax and the emissions tax.
Dr. Forson emphasized that removing the E-Levy aligns with efforts to ease the tax burden on citizens while strengthening social protection programs. The repeal aims to relieve individuals and businesses, particularly those in the informal sector, who argued the levy disproportionately affected low-income earners and hindered financial inclusion.
Persistent protests and public outcry pressured the government to act, as critics questioned the levy’s effectiveness in meeting revenue targets. Originally intended to widen the tax net, the levy failed to generate the projected revenue, prompting calls for its abolition.
During parliamentary proceedings, Finance Committee Chairman Isaac Adongo moved the motion, supported by former Deputy Finance Minister Dr. Stephen Amoah. Former Agriculture Minister Bryan Acheampong endorsed the repeal but urged a review of other taxes, including VAT, to provide economic relief.
Deputy Finance Minister Thomas Ampem-Nyarko acknowledged the country would lose over GHS 2 billion in revenue but assured that alternative measures would offset the shortfall. The Electronic Transfer Levy (Repeal) Bill 2025 nullifies the Electronic Transfer Levy Act, 2022 (Act 1075).
President John Dramani Mahama and the National Democratic Congress (NDC) had pledged to repeal the levy during the 2024 election campaign. With Parliament’s approval, the bill now awaits President Mahama’s formal assent before becoming law.
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