Ghana’s Parliament has today March 26th, 2025, approved the repeal of the Electronic Transfer Levy (E-Levy), awaiting presidential assent to take effect. The move fulfills a key campaign promise by President John Dramani Mahama to abolish the levy within his first 120 days in office.

The Electronic Transfer Levy (Repeal) Bill, 2025 was presented by Finance Minister Dr. Cassiel Ato Baah Forson and referred to the Finance Committee for consideration, after indication in the 2025 budget government was going to scrap the controversial levy.

After extensive deliberations with officials from the Ministry of Finance, the Attorney-General’s Department, and the Ghana Revenue Authority, the Committee recommended the bill’s passage.

The E-Levy, introduced in 2022, imposed a 1% charge on electronic transactions to broaden Ghana’s tax base. However, it faced widespread public resistance due to its impact on disposable incomes. The Finance Minister told the Committee that the government is implementing broader tax reforms aimed at improving household incomes.

The Finance Committee in approving the bill observed that the levy discouraged the transition to a cash-lite economy by penalizing electronic transactions while cash payments remained untaxed. The Minister noted that repealing the levy would encourage digital transactions, potentially reducing inflation and enhancing economic activity.

However, the repeal is expected to result in an estimated GHC 1.946 billion revenue loss for the 2025 fiscal year. The Finance Minister assured the Committee that alternative revenue measures have been put in place to offset the shortfall, proposing a repurposing of the tax refund account.

The bill, now passed by Parliament, awaits President Mahama’s assent to be enacted into law.