Ghana’s Deputy Finance Minister, Thomas Ampem Nyarko, has announced that the controversial Electronic Levy (E-Levy) will officially be removed by the end of March 2025, pending the approval of the 2025 budget and appropriation bill by Parliament.
Speaking during the OXFAM Tax Dialogue on Channel One TV on March 18, 2025, Nyarko clarified that once the budget process is completed, the E-Levy removal will take immediate effect.
“It will take effect the moment the budget and the appropriation are approved, and that will be by the 31st of this month. So, all things being equal, from April, you will see that all things will be done,” he assured.
What the Removal of E-Levy Means for Ghanaians
The Electronic Levy (E-Levy) was introduced in 2022 as a 1.5% tax on electronic transactions, including mobile money transfers, bank transfers, merchant payments, and inward remittances. The rate was later reduced to 1%, but it remained a highly debated policy, with many Ghanaians expressing concerns over its impact on digital transactions, financial inclusion, and business operations.
The removal of the E-Levy is expected to:
- Reduce transaction costs for individuals and businesses that rely on mobile money and digital payments.
- Encourage financial inclusion by making digital transactions more attractive.
- Stimulate economic activity as businesses and consumers will have more flexibility in cash flow management.
Beyond Tax Reforms: Addressing Ghana’s Investment Challenges
Beyond the E-Levy discussion, Deputy Minister Nyarko also emphasized the need for a broader review of Ghana’s investment climate. He noted that while Ghana’s stable political environment has made it an attractive destination for foreign investors, other critical economic and regulatory challenges continue to drive investors away.
“We as a country have not fully leveraged our good democratic credentials. A lot of foreign investors prefer Ghana because of our stable political environment, but somehow, other factors are discouraging investment inflows,” he stated.
Nyarko called for a comprehensive stakeholder engagement to analyze Ghana’s investment barriers and identify solutions to improve the business environment.
Looking Ahead
As Parliament prepares to finalize the 2025 budget, Ghanaians eagerly anticipate the official removal of the E-Levy and its potential impact on the economy. Meanwhile, the government’s focus on investment climate reforms could play a significant role in driving economic growth and attracting foreign direct investment in the long term.
More updates on the E-Levy removal and Ghana’s economic policies will be shared as Parliament completes its deliberations.
