E-Levy Officially scrapped by Parliament, awaiting President’s approval

E-Levy Officially scrapped by Parliament, awaiting President’s approval

In a historic decision, Ghana’s Parliament has unanimously passed the Electronic Levy Bill, 2025, officially repealing the Electronic Transfer Levy (E-Levy)—a tax that sparked nationwide backlash since its introduction. The bill was approved during parliamentary proceedings on Wednesday, March 26, 2025, with Chairman of the Finance Committee, Isaac Adongo, announcing the committee’s collective decision to scrap the levy. He acknowledged the widespread opposition the tax faced under the previous administration, particularly due to its strain on the disposable income of ordinary Ghanaians.

Key Parliamentary Debates and Final Approval Process

The repeal process involved a second reading and a heated debate, where it received overwhelming support from lawmakers across both political divides. Notable advocates for its removal included:

• Dr. Stephen Amoah, former Deputy Finance Minister and MP for Nhyaieso
• Majority Leader Mahama Ayariga
• Several MPs from both the Majority and Minority Caucuses

Following a brief discussion, Finance Minister Dr. Cassiel Ato Forson moved for the bill’s third reading, with Isaac Adongo seconding the motion. The Presiding Speaker, Bernard Ahiafor, subsequently adopted the bill, paving the way for its final approval. The bill now awaits presidential assent from President John Dramani Mahama, fulfilling his campaign pledge to abolish the E-Levy within his first 120 days in office.

Background: Why the E-Levy Was Scrapped

Introduced in May 2022, the Electronic Transfer Levy Act, 2022 (Act 1075) and its amendment, Act 1089, imposed a 1% tax on electronic transactions, including those processed via banks and mobile money platforms. The policy was initially designed to expand the tax base and boost national revenue. However, it failed to meet expectations, significantly underperforming in revenue generation.

• Projected revenue (Year 1): GH¢2.24 billion
• Actual revenue collected: GH¢246.9 million (just 11% of the target)

The levy’s failure, coupled with public dissatisfaction, prompted the current administration to prioritize its abolition as part of economic relief measures.

What’s Next?

With the Electronic Levy Bill, 2025 now passed by Parliament, Ghana is one step closer to eliminating the E-Levy completely, pending final presidential approval. The repeal is expected to ease the financial burden on citizens and boost digital transactions, fostering a more inclusive and business-friendly economy. SOURCE: RAYSOFHOPERADIO.COM