Parliament has approved the repeal of the Electronic Transaction Levy (E-Levy), marking a significant change in the country’s digital taxation policy.
The decision follows the passage of the Electronic Transaction Levy (Repeal) Bill, 2025, on Wednesday, March 26, 2025.
The repeal forms part of broader tax reforms aimed at reducing the financial burden on households and businesses while improving tax compliance, according to Finance Minister Dr. Cassiel Ato Forson.
“Mr. Speaker, we will abolish the 10% withholding tax on lottery winnings, also known as the ‘Betting Tax.’ Additionally, we will remove the 1% Electronic Transfer Levy (E-Levy), the Emission Levy on industries and vehicles, the VAT on motor vehicle insurance policies, and the 1.5% withholding tax on winnings from unprocessed gold by small-scale miners,” Dr. Forson announced during his presentation of the 2025 budget statement on Tuesday, March 3, 2025.
He emphasized that these measures are expected to boost disposable income, stimulate economic activity, and encourage voluntary tax compliance.
Since the announcement in the budget, most players in the digital economy and the general public have welcomed the news.
The E-Levy was first introduced in March 2022 under the New Patriotic Party (NPP) administration and applied to electronic transactions, including mobile money and bank transfers. Initially set at 1.5%, the rate was later reduced to 1% in January 2023 following widespread public backlash.
President Mahama is expected to assent to the bill, officially finalizing the removal of the controversial tax.
