Accra, Ghana – March 26, 2025
Parliament has officially approved the Electronic Transfer Levy Repeal Bill 2025, effectively abolishing the controversial Electronic Transfer Levy (E-Levy) that previously taxed electronic financial transactions.
The decision marks a significant policy shift by the government, responding to public outcry and concerns over the levy’s economic impact.
The E-Levy, introduced in May 2022, imposed a tax on mobile money and other electronic transactions, initially set at 1.5% and later reduced to 1%.
The tax faced strong opposition from both the public and businesses, with critics arguing that it disproportionately affected the poor and discouraged digital transactions.
Government’s Rationale for Repeal
Presenting the repeal bill, Finance Minister Dr. Ato Forson stated that the decision was based on extensive consultations and economic data that showed the levy had not generated the expected revenue. Instead, it had contributed to a decline in mobile money transactions, undermining Ghana’s digital economy agenda.
“The E-Levy was introduced with the hope of increasing domestic revenue, but it became clear that its impact on financial inclusion and economic growth was more detrimental than beneficial. This repeal is a step towards rebuilding confidence in Ghana’s digital financial ecosystem,” Dr. Ato Forson said.
Opposition and Public Reactions
The repeal was met with mixed reactions in Parliament. While the ruling government celebrated it as a progressive move, opposition lawmakers criticized the administration for what they described as “poor economic planning” that led to the levy’s introduction in the first place.
An MP, stated, “The government should have listened to Ghanaians before imposing the E-Levy. It has taken us years of economic hardship to arrive at this decision.”
On the streets of Accra, many Ghanaians welcomed the repeal, expressing relief that they would no longer have to pay extra charges on mobile money transfers. “This is long overdue. The E-Levy made life difficult for many of us who depend on mobile money for business and daily transactions,” said Akosua Boateng, a market trader.
Economic and Digital Finance Implications
Financial analysts predict that the repeal could lead to a resurgence in mobile money transactions and digital payments. Some experts believe that eliminating the tax will encourage more people to return to using formal financial services instead of cash-based transactions.
“The removal of the E-Levy is likely to restore confidence in digital financial services, boosting financial inclusion and economic activity,” said economist Dr. Nana Yeboah.
The government has yet to announce alternative revenue measures to fill the gap left by the abolished tax. However, officials have hinted at a stronger focus on broadening the tax base and improving tax compliance rather than relying on direct levies on electronic transactions.
As Ghana moves forward without the E-Levy, many citizens hope this policy reversal signals a more inclusive approach to economic decision-making, where public concerns play a central role in shaping fiscal policies.
