Parliament has officially repealed the E-Levy tax imposed on electronic transactions, such as mobile money transfers, as of Wednesday, March 26, 2025.
The repeal will take effect once the President assents to it.
The E-Levy, introduced to broaden the country’s tax base and increase government revenue, faced significant opposition. Many critics argued that it would negatively impact the economy and disproportionately affect the poor.
The current NDC government pledged to abolish the tax upon assuming office.
The motion for the repeal was moved by the Chairman of Parliament’s Finance Committee, Mr. Isaac Adongo.
Presenting the committee’s report, Mr. Adongo explained that the Electronic Transfer Levy Act, 2022 (Act 1075), as amended, imposed a 1% levy on all electronic transactions, including mobile money payments, bank transfers, merchant payments, and inward remittances.
While the tax aimed to expand the tax base and enhance domestic revenue mobilization, it was widely resisted due to its adverse effects on citizens’ disposable income.
“The Minister informed the committee that the government is undertaking tax reforms and implementing measures to improve disposable income.
One such measure is the repeal of the Electronic Transfer Levy Act.
Removing the levy will increase household disposable income and reduce the tax burden on individuals,” he stated.
Mr. Adongo stated that the committee observed that the levy hindered efforts to promote a cashless economy and discouraged electronic transactions.
“The Minister indicated that the levy’s implementation was also discriminatory, as individuals making electronic payments bore the tax burden, while cash transactions remained exempt.
The levy repeal will eliminate this inequality and encourage more people to use electronic payment methods. This shift is expected to help reduce inflation and improve the economy,” he added.
Addressing concerns about the financial impact of the repeal, Mr. Adongo clarified that the committee was informed that the government would lose an estimated GHC1.946 billion in revenue for the 2025 fiscal year.
However, the Minister for Finance assured that this loss would not significantly affect government programs.
“The Minister informed the committee that alternative revenue measures are in place to ensure the smooth execution of government programs. He assured us that the repeal would not have a major impact on planned initiatives,” he reiterated.
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