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The Minister of Finance, Dr. Cassiel Ato Forson, has announced that John Mahama-led government will abolish the Electronic Transfer Levy (E-Levy).
The announcement was made during the presentation of the 2025 Budget Statement and Economic Policy to Parliament on March 11, 2025.
Dr. Forson delivered the budget on behalf of President John Dramani Mahama, by Articles 179 and 180 of the 1992 Constitution of the Republic of Ghana, as well as Sections 21 and 23 of the Public Financial Management Act, 2016 (Act 921).
In his address, the finance minister declared,
We will abolish the Electronic Transfer Levy (E-Levy)
He emphasised that the removal of this levy, along with other taxes, is aimed at easing the financial burden on households and boosting disposable incomes.
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Mr. Speaker, the removal of these taxes will ease the burden on households and improve their disposable incomes. In addition, it will support business growth and improve tax compliance.
Background on the E-Levy
The Electronic Transfer Levy (E-Levy) was introduced in May 2022 under the Electronic Transfer Levy Act, 2022 (Act 1075) and the Electronic Transfer Levy (Amendment) Act, 2022 (Act 1089).
The policy imposed a 1% levy on electronic transfers, including transactions facilitated by banks and mobile money providers such as MTN Momo, Vodafone Cash, AirtelTigo Money, Zeepay, GCB G-Money, and Yup Ghana.
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The levy was designed to broaden the tax base and encourage public contribution to national development.
Initially projected to generate GH¢2.24 billion in revenue for the year, the E-Levy fell significantly short of expectations.
Within its first year of implementation, it accrued only GH¢246.9 million, representing a mere 11% of the projected revenue.