Accra, Ghana – The Finance Minister, Dr. Cassiel Ato Forson, is set to present a bill before Parliament under a certificate of urgency to abolish the Electronic Transfer Levy (E-Levy) and the betting tax. This move comes as part of the government’s commitment to easing the tax burden on Ghanaians and fostering a more business-friendly economic environment.
The bill, expected to be laid before Parliament in the coming days, seeks to repeal two of the most controversial taxes introduced in recent years. The E-Levy, which was imposed on mobile money and electronic transactions, has been widely criticized for discouraging financial inclusion and burdening ordinary Ghanaians. Similarly, the betting tax, which deducted a percentage of winnings from bettors, has faced opposition from stakeholders in the gaming industry.
A Step Towards Economic Relief
Dr. Ato Forson, speaking ahead of the bill’s presentation, reiterated the government’s stance on tax reforms. “We recognize the concerns raised by the public and various industry players. The repeal of these taxes is part of our broader effort to create a more enabling environment for businesses and individuals while exploring alternative revenue streams,” he stated.
The E-Levy, introduced in 2022, imposed a 1.5% tax (later reduced to 1%) on electronic transactions, a move that led to a decline in mobile money transactions as many Ghanaians sought alternative means of transferring funds. Similarly, the betting tax, introduced in 2023, imposed a 10% tax on winnings, a policy that many young people and industry stakeholders argued was stifling the booming gaming sector.
Dr. Ato Forson’s proposal to scrap these taxes aligns with the new administration’s economic strategy, which prioritizes boosting digital financial transactions and reviving business confidence in the gaming and entertainment sector.
Parliamentary Debate and Political Reactions
The certificate of urgency status of the bill indicates that the government is seeking an expedited review and approval process in Parliament. However, while the ruling government will push for a swift passage, the proposal is expected to face intense scrutiny and debate from the opposition and some economic analysts.
Former Finance Minister Ken Ofori-Atta has already raised concerns about the financial implications of repealing these taxes. “We need to carefully assess the impact of scrapping these revenue streams. While tax relief is necessary, we must ensure that we do not create a deficit that forces the country into excessive borrowing,” he argued.
Other opposition lawmakers have questioned how the government intends to replace the revenue lost from these tax cuts. The E-Levy alone was projected to generate billions of Ghana Cedis annually, with the betting tax also contributing a significant amount to state revenue.
However, proponents of the repeal argue that eliminating these taxes will lead to long-term economic benefits. Many believe that removing the E-Levy will encourage more people to resume mobile money transactions, boosting financial inclusion and digital transactions. Similarly, repealing the betting tax could rejuvenate the gaming industry, which has seen a decline in activity due to the controversial levy.
Economic and Social Implications
Economists have mixed opinions on the repeal. While some see it as a positive move that will reduce the cost of financial transactions and boost business activity, others caution that the government must have alternative revenue measures in place to compensate for the loss.
Telecommunications companies and fintech operators have welcomed the expected repeal of the E-Levy, noting that the tax significantly reduced mobile money usage since its introduction. A fintech expert commented, “This repeal will help drive mobile money adoption again, benefiting businesses and individuals who rely on digital transactions.”
Similarly, industry players in the betting sector have expressed optimism. Many gaming companies had raised concerns that the betting tax discouraged participation, leading to lower revenues. The repeal is expected to increase patronage and investments in the sector.
What’s Next?
With the bill set to be presented in Parliament soon, all eyes will be on lawmakers to determine the fate of these two controversial taxes. The government is expected to outline a comprehensive alternative revenue generation plan to compensate for any shortfalls.
If the bill is passed, Ghana will join other African nations that have revised or abolished digital transaction taxes in response to economic challenges and public discontent.
As the debate unfolds, Ghanaians eagerly await a final decision on the fate of the E-Levy and betting tax, hoping that their financial burdens will soon be eased.
Stay tuned for further updates as this story develops.
