Parliament has officially passed the Electronic Transfer Levy Repeal Bill 2025, marking the end of the contentious E-Levy, which had taxed electronic financial transactions in the country.

The levy, which was introduced in 2022, initially set at 1.75% and later reduced to 1%, applied to a range of digital transactions, including mobile money payments, bank transfers, and inbound remittances.

Despite the government’s intention to bolster revenue, the E-Levy faced widespread backlash from citizens, business owners, and industry stakeholders. Critics argued that it placed a disproportionate financial burden on consumers, undermining efforts to promote digital financial inclusion and increasing transaction costs.

In parliamentary discussions on the repeal, Deputy Finance Minister Thomas Nyarko Ampem emphasized the positive impact on Ghana’s economy, noting that the repeal would return approximately GH¢2 billion to the public. This, he argued, would help alleviate financial pressures and foster greater economic activity.

The decision to repeal the E-Levy aligns with the government’s broader objective of encouraging digital payments and supporting financial inclusion without imposing additional costs on users.

The move is expected to boost electronic transactions, benefiting businesses, mobile money agents, and the broader financial sector. It signals a shift towards a more favorable environment for digital commerce and economic growth in Ghana.

Source:TheDotNews