Parliament Repeals Controversial Electronic Transfer Levy
In a landmark decision, Parliament passed the Electronic Transfer Levy (Repeal) Bill 2025, officially abolishing the widely debated E-Levy. The tax, initially set at 1.75% and later reduced to 1%, applied to digital transactions, including mobile money payments, bank transfers, and inward remittances.
Why Was the E-Levy Scrapped?
The move to repeal the E-Levy follows sustained public opposition and economic concerns. Deputy Finance Minister Thomas Nyarko Ampem emphasized that eliminating the tax would provide financial relief, effectively injecting GH¢2 billion back into the economy.
“Scrapping the E-Levy will ease financial burdens on Ghanaians and encourage digital transactions, fostering economic growth,” Ampem stated during the parliamentary debate.
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The Impact of E-Levy on Businesses & Consumers
Since its introduction in 2022, the E-Levy was intended to boost government revenue. However, it faced strong resistance due to concerns about its impact on businesses and individuals:
Discouraged digital transactions – Many Ghanaians reverted to cash payments to avoid the tax.
Hurt low-income earners – The levy disproportionately affected those relying on mobile money.
Stifled fintech growth – The tax slowed digital financial services adoption.
NDC Fulfills Campaign Promise
Before the 2024 general election, the NDC government made a strong commitment to repealing the E-Levy within its first 120 days in office. This promise was a core part of its social contract with Ghanaians, reinforcing its stance against policies perceived as economically oppressive.
What Happens Next?
The repeal of the E-Levy marks a new era for digital finance in Ghana. With no additional tax burden on electronic transactions, businesses and individuals can expect:
Increased mobile money adoption – More Ghanaians will embrace cashless payments.
Boosted economic activity – Enhanced digital transactions could drive financial inclusion.
New government revenue strategies – Authorities may explore alternative tax measures.