Ghanaians Welcome Move to Abolish E-Levy as Bill Awaits Mahama’s Assent

Ghana’s Parliament has voted to abolish the Electronic Transaction Levy (E-Levy), a tax on digital financial transactions that has been widely criticized since its introduction in 2022. The move has been welcomed by many Ghanaians, who have long opposed the tax, citing its negative impact on digital transactions and financial inclusion.

Ghana’s Parliament Votes to Abolish E-Levy, Bill Awaits Presidential Assent

The bill will now be sent to President John Mahama for final approval. The decision aligns with Mahama and the National Democratic Congress (NDC)’s campaign promise to scrap the E-Levy, a commitment that played a crucial role in their victory in the December 2024 general elections.

Introduced by the previous New Patriotic Party (NPP) administration, the E-Levy imposed a 1.5% tax on electronic transactions, including mobile money transfers, bank transfers, and online payments. It was later reduced to 1%, following public backlash.

While the NPP government argued that the tax was necessary to boost revenue for infrastructure and development, it faced significant resistance from businesses, financial analysts, and everyday citizens. Many critics claimed that the levy disproportionately affected low-income earners and discouraged digital transactions, ultimately hindering financial inclusion.

Since its implementation, the E-Levy has sparked protests, heated debates, and public outcry, with many Ghanaians arguing that it placed an unnecessary financial burden on citizens who rely on digital platforms for their daily transactions.

During the parliamentary session on Friday, March 28, 2025, lawmakers unanimously supported the bill, with no opposition to its passage. This rare consensus highlights bipartisan agreement on the need to eliminate the tax, given its widespread unpopularity.

With Parliament's approval secured, all eyes are now on President John Mahama, who is expected to sign the bill into law in the coming days. Once assented to, the E-Levy will be officially scrapped, marking a major policy reversal from the previous administration.

The abolition of the E-Levy is expected to revive digital transactions and financial activity, which had reportedly slowed due to the tax. However, it also raises concerns about how the government plans to replace the revenue lost from the levy.

Ghanaians now await official confirmation from the presidency, which will determine the final fate of the E-Levy in the coming days.