E-Levy will be cancelled in my first budget as minister – Dr Ato Forson

Finance Minister-designate, Dr Cassiel Ato Forson, has reiterated his commitment to abolishing the Electronic Transactions Levy (E-Levy) alongside other nuisance taxes, aligning with President John Mahama's 120-day campaign promise.

Dr Forson argues that the E-Levy threatens Ghana's progress toward adopting a cashless system. The levy, introduced in 2022, imposed a 1.5% charge on electronic transactions exceeding GH₵100 daily. Although later reduced to 1%, it remains widely criticised as regressive and burdensome for Ghanaians.

During his vetting on Monday, 13 January, Dr Forson firmly stated his unchanged position, promising the tax's abolition in the first budget presented by the new administration. He said:

The E-Levy is neither a direct tax, indirect tax, nor an excise tax. I don't know how to classify the E-Levy as a tax practitioner. Mr Chairman, it doesn't mean I don't recognise that the E-Levy brings in certain revenue. But the fact remains that the E-Levy retards our progress toward a cash-light economy and fintech. We need to abolish the E-Levy.

He added:

I am on record saying that, given the opportunity to abolish the E-Levy, I would. I want to restate that position. If approved, as part of the first budget, I will announce that we will abolish the E-Levy. His Excellency President Mahama committed to this in our 120-day agenda, and we stand by it.

Dr Forson also mentioned that the abolition would be accompanied by expenditure cuts to address the revenue gap, stating:

It shouldn't always be about revenue, revenue, revenue. Why not pay attention to expenditure? Remove the E-Levy, don’t replace it, and cut corresponding expenditure.

In a related development, Dr Forson also reaffirmed plans to scrap the 10% betting tax.