Parliament has officially abolished the controversial Electronic Transfer Levy (E-Levy), marking a significant milestone in Ghana’s financial landscape. The passage of the Electronic Transfer Levy Repeal Bill 2025 puts an end to the tax that once burdened electronic financial transactions, bringing relief to individuals, businesses, and digital payment users across the country.
What Was the E-Levy?
The E-Levy was introduced in 2022 by the previous NPP administration as a revenue-generating measure. Initially set at 1.75% before being revised to 1%, it applied to transactions like:
• Mobile money transfers
• Bank transfers
• Online payments
• Inward remittances
While the government argued that the levy would fund infrastructure projects, it quickly became one of the most unpopular taxes in Ghana’s history, sparking public protests, economic concerns, and resistance from businesses.
The Push for Repeal
The scrapping of the E-Levy is a fulfillment of a major campaign promise by President John Mahama and the NDC, who pledged to remove the tax upon assuming office after their victory in the December 2024 elections.
The move gained overwhelming support in Parliament on March 26, 2025, with no opposition during voting. Deputy Finance Minister Thomas Nyarko Ampem emphasized that the repeal will return GH¢2 billion to Ghanaians, easing financial pressures and fostering digital financial growth.
Public Reaction and Economic Implications
The removal of the levy is expected to:
1. Encourage digital transactions and financial inclusion
2. Ease the cost of mobile money and bank transfers
3. Boost digital commerce and economic activity
4. Relieve financial pressure on citizens and small businesses
While some still argue that the tax was a necessary source of revenue, the overwhelming consensus is that abolishing the E-Levy will revitalize Ghana’s digital economy and promote seamless transactions.
Now that the bill is awaiting President Mahama’s assent, all eyes are on the next steps in Ghana’s evolving financial policy. Is this the start of a more digital-friendly economy? Time will tell.
What’s your take on the repeal of the E-Levy? Let’s discuss in the comments!
