E-Levy Repeal a Win for Ghana – Prof. Bokpin
Economist and Professor of Finance at the University of Ghana Business School, Godfred Bokpin, has described the repeal of the Electronic Transfer Levy (E-Levy) as a significant victory for the country and its citizens.
According to him, the tax was a flawed policy from its inception due to a lack of proper consultation and evaluation.
“The repeal of the E-Levy is a win for the country and the citizenry. I think E-Levy was a low moment in our democracy, largely because there wasn’t proper consultation,” he stated in an interview on TV3’s New Day on Thursday, March 27, 2025.
Prof. Bokpin criticized the initial introduction of the E-Levy, arguing that had the government conducted broader stakeholder engagements—including with the telecommunications sector, financial institutions, and ordinary Ghanaians—it might have shaped a more effective policy.
He further contended that the levy did not align with fundamental taxation principles and was ultimately detrimental to Ghana’s digital economy.
“It surprised me in 2021 when the government spoke about introducing E-Levy; we opposed it strongly. In fact, I know colleague lecturers who sent memos to the Ministry of Finance, trying to argue that this was not the way to go,” he noted.
According to Prof. Bokpin, the implementation of the E-Levy negatively impacted Ghana’s connectivity index and increased the cost of mobile services, with approximately 30% of service costs attributed to taxes, including the E-Levy.
Mahama Set to Sign Repeal Bill into Law
Meanwhile, President John Mahama is expected to assent to the E-Levy repeal bill today, March 27, 2025, according to Deputy Finance Minister Thomas Nyarko Ampem. The move will officially mark the end of the contentious tax on digital transactions, which was introduced in 2022 by the previous New Patriotic Party (NPP) administration.
Speaking on JoyNews’ PM Express on Wednesday, March 26, Mr. Ampem confirmed that while Parliament had passed the repeal bill, it was yet to be formally transmitted to the President for his approval.
The repeal of the E-Levy has been widely welcomed by businesses and consumers, who have consistently opposed the tax, arguing that it discouraged digital transactions and hindered financial inclusion. The levy had imposed a 1% charge on electronic transactions, including mobile money and bank transfers.
Commenting on the timeline for the full repeal, Mr. Ampem assured that it would take effect before the end of the month.
“I’m sure it will take effect before next week Friday,” he stated.
