E-Levy and Betting Tax Gone for Good: Mahama Signs Historic Bill

In a historic move, President John Dramani Mahama has officially signed into law several bills aimed at repealing controversial taxes introduced under the Akufo-Addo administration.

Among these is the much-debated Electronic Transaction Levy (E-Levy), a tax that charged a 1% levy on all electronic transactions, which had faced strong opposition from the public.

This marks a significant victory for Ghanaians, particularly those in mobile money businesses who were hit hardest by the e-levy.

The levy, which was introduced with exemptions and a daily free limit, was seen by many as an unfair burden on ordinary citizens.

In response to public discontent, Mahama had pledged during his campaign to scrap the tax, and his administration has now fulfilled that promise.

Alongside the e-levy, Mahama has also signed the Betting Tax and Emissions Tax repeal bills into law.

The Betting Tax, introduced in August 2023, imposed a 10% withholding tax on betting and lottery winnings, with an expected revenue generation of about GH¢400 million annually.

However, it sparked protests from business owners and gambling enthusiasts alike, who argued that it unfairly targeted an already struggling industry.

In addition, the Emissions Levy, which had been criticized for potentially causing double taxation, was also abolished.

The Ghana Union of Traders Association had strongly opposed this levy, fearing it would place an additional financial burden on businesses already struggling with high operational costs.

These changes reflect Mahama’s promise to ease the financial burdens on Ghanaians and redirect focus toward improving tax compliance and expanding the tax base.

However, analysts have raised concerns about how the removal of these taxes could impact the government’s revenue projections for 2025, particularly as the government has committed to investing in key national projects without introducing new taxes.

Mahama’s signing of these bills underscores his administration’s commitment to ensuring a more equitable financial environment for the average Ghanaian.