Ghana’s Parliament Passes Bill To Abolish Controversial E-Levy

Source: Africa Publicity

In a move widely welcomed by Ghanaians, Parliament passed a bill on Wednesday, March 26, to abolish the Electronic Transfer Levy (E-Levy). The bill will now be sent to President John Mahama’s desk for assent, marking a significant step towards scrapping the levy.

The E-Levy, introduced in 2022 by the previous NPP administration, imposed a 1.5% tax on electronic transactions, including mobile money transfers, bank transfers, and online payments. While some argued it would generate revenue for infrastructural development, others expressed concerns about its impact on digital transactions and the economy.

Since its introduction, the E-Levy has faced significant opposition, with protests and public outcry arguing that it disproportionately affected low-income earners and the unbanked population. President Mahama and the NDC had promised to abolish the tax, making it a key campaign message ahead of their victory in the December 2024 general elections.

The bill’s passage through Parliament was unanimous, with no dissenting voices challenging the move to outlaw the tax. The decision is seen as a major win for Ghanaians who have been calling for the levy’s abolition.