Parliament Approves Bill to Abolish E-Levy, Awaiting Presidential Assent
Parliament has officially passed a bill to abolish the controversial Electronic Transfer Levy (E-Levy), a tax on digital transactions that has faced widespread public opposition since its introduction in 2022.
The bill, passed on Wednesday, March 26, will now be forwarded to President John Mahama for his assent, the final step before it becomes law.
The E-Levy, introduced by the previous New Patriotic Party (NPP) administration, imposed a 1.5% tax on electronic transactions, including mobile money transfers, bank transfers, and online payments. While proponents argued that it was necessary to boost government revenue for infrastructural development, the tax was met with strong resistance from the public, businesses, and opposition political figures.
Critics of the levy contended that it disproportionately burdened low-income earners and discouraged financial inclusion by making digital transactions more expensive. The policy also sparked protests and public outcry, with many arguing that it hindered economic activity and placed undue pressure on small businesses.
The bill’s passage in Parliament marks a significant step toward fulfilling the campaign promise of the National Democratic Congress (NDC) and President Mahama, who pledged to repeal the tax upon assuming office after the December 2024 general elections.
Notably, when the motion was put to a vote on Friday, there was no opposition from Members of Parliament, signaling broad consensus on the decision to scrap the levy.
Now, all eyes turn to President Mahama, whose assent will finalize the abolishment of the tax, bringing relief to many Ghanaians who have long opposed its implementation.
