Deputy Finance Minister Thomas Ampem Nyarko has defended the government’s decision to abolish the Electronic Levy (E-Levy), the betting tax, and other taxes, stating that the move is in line with President John Dramani Mahama’s campaign promises.
Speaking on the OXFAM Tax Dialogue on Channel One TV, he explained:
“We have taken out some taxes in fulfillment of a campaign promise. Mahama promised that he would remove E-Levy, the betting tax, and several others—and he has delivered. We have done this to respect the social contract that President Mahama made with Ghanaians.”
Nyarko further stressed that the decision was not just political but based on genuine economic concerns.
“We did not just promise the removal of taxes—we were convinced they had to go. E-Levy, for example, was something every Ghanaian knew we opposed from the beginning. We still believe it hinders financial inclusion, and there is a report to support that.”
The Electronic Transfer Levy (E-Levy) was introduced by the Government of Ghana on May 1, 2022 under the administration of President Nana Akufo-Addo and his Finance Minister at the time, Ken Ofori-Atta.
Why was E-Levy introduced?
The E-Levy was introduced primarily to increase government revenue and reduce reliance on external borrowing. The government argued that it was necessary to fund key projects and support economic recovery following the COVID-19 pandemic.
Key reasons for its introduction included:
- Revenue Generation: To provide additional funds for infrastructure, education, and job creation.
- Reducing Public Debt: To lessen Ghana’s reliance on loans and external financial aid.
- Expanding the Tax Base: To include the informal sector, which largely operates outside the traditional tax system.
Initially set at 1.5% on all electronic transactions above GH₵100 per day, the levy was later reduced to 1% in January 2023 due to public backlash. Critics argued that it was burdensome, discouraged digital transactions, and hindered financial inclusion.
With the Mahama administration now removing the E-Levy in 2025, the debate over its effectiveness and economic impact continues.
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