A policy think tank, the Centre for Policy Scrutiny (CPS), has called for the modification and reintroduction of the Electronic Transfer Levy (E-Levy), COVID-19 Levy, and the Betting Tax, arguing that their outright abolition risks widening Ghana’s fiscal gap and undermining domestic revenue mobilisation.
The call was made during a public forum held on April 7, 2026, under the theme “Assessing the Abolishment of the E-Levy, COVID-19 Levy and the Betting Tax: Fiscal Impact and Policy Considerations.” The event brought together tax experts, policymakers, and stakeholders to evaluate the economic and social implications of the scrapped taxes.
Presenting at the forum, lawyer and chartered accountant and tax consultant Isaac Agyiri Danso emphasized the fundamental role taxation plays in national development, noting that public resistance to taxes must be balanced against the need for public goods and services.
“Taxes are a price that we pay to a civilized society,” he stated. “If you want street lights, quality education and healthcare, then we may have to change our attitude towards taxation and be willing to pay the price for it.”
Mr. Danso explained that the three taxes were introduced during what he described as a “perfect crisis” in 2022, when Ghana faced post-COVID economic recovery challenges, high inflation nearing 50%, currency depreciation of about 30%, and rising public debt levels exceeding 70% of GDP.
According to him, these levies were designed to close critical revenue gaps at a time when government spending on social interventions was increasing. However, he acknowledged that policy design flaws—particularly unrealistic revenue projections—undermined their effectiveness and public acceptance.
He cited the E-Levy as a key example, noting that although it was initially projected to generate GH¢6.96 billion annually, it recorded only about GH¢643 million in its first year—less than 10% of the target. Despite this, he stressed that the tax later showed strong growth potential.
“The most important thing we need to note here is that this was a tax that was growing,” he said. “After initially missing its target, it recovered significantly, growing by nearly 200% within a short period.”
Similarly, the COVID-19 Levy demonstrated steady performance due to its integration into the existing VAT system, eventually generating over GH¢3 billion annually before its abolition. The Betting Tax, though less impactful, still contributed measurable revenue.
Mr. Danso warned that the abolition of these taxes has created a significant revenue shortfall, estimating that Ghana could forgo between GH¢40 billion and GH¢80 billion in potential revenue over the coming years based on projections and adjusted actuals.
“For context, just GH¢8 billion could fund thousands of classrooms, dozens of hospitals, and over a thousand kilometres of roads,” he noted. “This is the cost of civilization that we have left on the table.”
He further highlighted equity concerns associated with the E-Levy, explaining that lower-income earners bore a disproportionate burden, with some spending up to 8% of their income on the tax compared to less than 1% for high-income earners.
To address this, he proposed targeted reforms rather than outright abolition. These include increasing minimum transaction thresholds, capping maximum charges, and ring-fencing revenues to fund pro-poor interventions such as rural electrification, water supply, and social protection programmes.
“How about we take more from consumption but spend it exclusively on programmes that benefit the low-income earners?” he suggested.
Mr. Danso also underscored the efficiency of digital taxation, noting that the E-Levy was relatively easy to administer and aligned with the global shift towards digital economies.
“A tax that plugs into a digital ecosystem is futuristic—it will only get better over time,” he said, adding that more than 15 African countries have already implemented similar digital transaction taxes.
In his opening remarks, CPS Executive Director Adu Owusu Sarkodie cautioned against politically motivated tax decisions, urging policymakers to prioritise data-driven approaches.
“Taxes should not be introduced and abolished based on whimsical promises, but based on data,” he said. “There is a need to balance economic efficiency with political expediency.”
He further noted that Ghana’s revenue-to-GDP ratio of about 16% remains below the 25% benchmark for middle-income countries, while public debt has grown significantly faster than revenue over the past two decades.
Also speaking at the forum, Technical Advisor to the Commissioner-General of the Ghana Revenue Authority (GRA), Ms. Elsie Appau-Klu, acknowledged that the abolition of the taxes has created short-term revenue pressures but described it as a potential long-term investment.
“By scrapping these taxes, we believe the burden on individuals will be lowered, and if backed with strong tax education and engagement, it will encourage voluntary compliance,” she said.
She revealed that the GRA recorded a 20% increase in revenue collection in the first quarter of 2026 compared to the same period in 2025, attributing the growth to improved systems and compliance measures.
However, she pointed out that Ghana still faces a compliance gap, with only about 19% of eligible taxpayers paying income tax and less than 30% complying with VAT obligations.
“We may not necessarily need more taxes,” she said. “We need more efficient systems to collect the taxes we already have.”
