President John Dramani Mahama has officially abolished the Electronic Transfer Levy (E-Levy), Betting Tax, and Emissions Levy, fulfilling a key campaign promise of the National Democratic Congress (NDC) to ease the financial burden on Ghanaians.
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| Mahama scraps E-Levy, Betting Tax, and Emissions Levy as part of major tax reforms in Ghana |
This significant policy shift came after Mahama assented to a series of legislative bills, which were earlier presented to Parliament by Finance Minister Dr. Cassiel Ato Forson on March 13, 2025. Among the major bills passed were:
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Electronic Transfer Levy (Repeal) Bill, 2025
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Emissions Levy (Repeal) Bill, 2025
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Income Tax (Amendment) Bill, 2025
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Earmarked Funds Capping and Realignment (Amendment) Bill, 2025
Background of the Scrapped Taxes
Electronic Transfer Levy (E-Levy)
The E-Levy, introduced under former President Nana Akufo-Addo’s administration, imposed a 1% tax on all electronic transactions, with a GH¢100 daily free limit and specific exemptions. It was part of a broader economic recovery plan but was met with widespread opposition.
Ghanaians, particularly mobile money vendors and digital payment users, protested the tax, arguing that it discouraged financial inclusion and increased the cost of digital transactions. The e-levy was also a major political issue, with former Vice President Mahamudu Bawumia pledging to abolish it if he won the presidency.
Betting Tax
A 10% withholding tax on betting and lottery winnings was introduced on August 15, 2023, with the aim of generating approximately GH¢400 million annually. However, the tax was widely unpopular, especially among the youth, who saw it as a direct attack on a lucrative and fast-growing industry.
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President Mahama had previously hinted at alternative taxation models for the betting industry, recognizing its economic potential while balancing government revenue needs.
Emissions Levy
The Emissions Levy was another tax that faced strong resistance, particularly from business groups and environmental advocates. Organizations like the Ghana Union of Traders Association (GUTA) argued that the levy amounted to double taxation, as businesses were already paying multiple environmental-related fees.
Impact on Government Revenue
While these tax cuts have been welcomed by ordinary Ghanaians and business owners, some policy analysts have raised concerns about the potential loss of government revenue.
According to policy analyst Alfred Appiah, the scrapped taxes could negatively impact revenue projections outlined in the 2025 budget. Total revenue and grants for 2025 were projected at GH¢223.8 billion, and with tax reductions, the government may struggle to meet its budgetary commitments.
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"Since the government is planning to scrap taxes and still invest in projects, there’s a chance that it overstated revenue to signal that all is well," Appiah told YEN.com.gh.
A Bold Economic Gamble
Mahama’s decision to scrap the E-Levy, Betting Tax, and Emissions Levy marks a bold economic move that could either boost public trust and economic activity or create budgetary constraints.
As his administration seeks alternative revenue sources, Ghanaians will be watching closely to see how the government plans to sustain national projects and social programs without these controversial taxes.
President John Dramani Mahama, on Wednesday, April 2, assented to the repeal of the Electronic Transfer Bill (E-Levy), Betting Tax.#GhanaNewsAgency #GNA pic.twitter.com/lzttCjQzyy
— Ghana News Agency (@GHANANEWSAGENCY) April 2, 2025
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