E-Levy, Betting Tax, and Emissions Levy Officially Abolished by President Mahama
In a milestone move aimed at resetting Ghana’s economy and reassuring financial burdens on the citizens, President John Dramani Mahama has authoritatively abolished the Betting Tax, the Emissions Levy, and the Electronic Transactions Levy (E-Levy). This decision underscores a momentous shift in the nation’s fiscal policy. Reflecting the administration’s pledge to developing economic growth and improving the well-being of Ghanaians.
The Electronic Transactions Levy (E-Levy) was introduced in November 2021 by Finance Minister Ken Ofori-Atta. As a means to generate revenue from electronic transactions within the informal sector. The levy demands a 1.75% charge on all digital transactions. Including person-to-person mobile money (MOMO) transfers, inward remittances and merchant payments. The government advised that this levy could generate roughly $1.15 billion in revenue. Intended to finance infrastructure projects, support entrepreneurship, and create job opportunities for millions of Ghanaians.
During the 2024 campaign season, President Mahama promised to abolish all these taxes imposed on the citizens.
President Mahama’s administration has conveyed concerns that these levies unfairly affected ordinary citizens and small businesses. Detering economic participation and growth. The Electronic Transactions Levy (E-Levy), in particular, faced objection for potentially expanding bias and off-putting the use of digital financial services. By abolishing these taxes, Mahama’s administration aims to arouse economic activities, encourage digital transactions, and provide comfort to individuals and businesses equally.
The main objectives for the removal of these levies are likely to have several positive economic impacts such as
1. Environmental and Automotive Benefits: Abolishing the Emissions Levy may reduce the financial burden on vehicle owners. Ensuring the maintenance and registration of vehicles while the government pursue substitute ways to address environmental concerns.
2. Increased Digital Transactions: Removing the E-Levy is expected to encourage more citizens to take advantage of electronic payment platforms,
encouraging financial inclusion and rejuvenating the economy.
3. Growth in the Betting Industry: The abolition of the betting Tax could lead to expansion in the gaming and betting sector. Possibly attracting investment and creating employment opportunity.
However, in response to concerns about possible revenue losses, President Mahama’s government has listed plans to seek alternative revenue streams that do not disproportionately burden citizens. These include reviving tax compliance, enlightening the tax base through interpretation of the informal sector and clouting natural resources more adequately.
Furthermore, the government is focused on investing digital infrastructure and improving financial literacy to boost the benefits of enlarged electronic transactions. Environmental ambitions are also set to be reexamined to ensure that sustainability goals are met without imposing financial burdens on the citizens directly.
The removal of the E-Levy, Betting Tax, and Emissions Levy by President Mahama serves as a vital shift in Ghana’s economic and political view. Moreover, the move aims to inspire economic growth and ease financial burden on the citizens. It also recounts challenges in terms of revenue generation and environmental protection. To achieve this policy change will depend on the government’s ability to invoke effective alternative policies that balance economic development with budgetary responsibility and environmental upheldness.
