Ghana’s Parliament has approved the repeal of the Electronic Transfer Levy (E-Levy), with the bill now awaiting President John Dramani Mahama’s assent to become law.

This move fulfills a major campaign promise by President 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.

The government had earlier signaled its intent to scrap the controversial levy in the 2025 budget.

Following thorough deliberations with officials from the Ministry of Finance, the Attorney-General’s Department, and the Ghana Revenue Authority, the Finance Committee endorsed the bill, leading to its approval by Parliament.

The E-Levy, introduced in 2022, imposed a 1% charge on electronic transactions as part of efforts to expand Ghana’s tax base.

However, it faced strong public opposition due to its impact on disposable incomes.

The Finance Minister informed the Committee that the government is implementing broader tax reforms aimed at easing the financial burden on households.

The Committee noted that the levy discouraged the adoption of digital payments by penalizing electronic transactions while cash transactions remained untaxed.

The Finance Minister emphasized that repealing the levy would encourage digital transactions, potentially lower inflation, and boost economic activity.

However, the repeal is expected to create a GHC 1.946 billion revenue shortfall for the 2025 fiscal year.

The Finance Minister assured lawmakers that alternative revenue measures have been put in place, including the repurposing of the tax refund account, to offset the loss.

With Parliament’s approval secured, the bill now awaits President Mahama’s assent to take effect.