Parliament Approves Bill to Scrap Controversial E-Levy: Awaiting President Mahama’s Approval

In a landmark decision on Wednesday, March 26, the Ghanaian Parliament passed a bill that aims to abolish the controversial Electronic Transfer Levy (E-Levy).

This move comes as a welcomed relief to many Ghanaians who have long expressed their dissatisfaction with the levy since its introduction in 2022.

The bill, which was passed with overwhelming support, will now be forwarded to President John Mahama for final approval.

If the President gives his assent, the E-Levy will officially be scrapped, putting an end to one of the most hotly debated tax policies in recent years.

The E-Levy was initially introduced by the New Patriotic Party (NPP) administration in 2022.

The policy aimed to impose a 1.5% tax on a range of electronic transactions, including mobile money transfers, bank transfers, and online payments.

Proponents of the levy argued that the tax would help generate revenue needed for vital infrastructure projects across the country.

However, the tax faced a storm of criticism from the public, businesses, and political figures who believed it would harm the economy and particularly affect the unbanked and low-income earners who rely on digital payment systems for day-to-day transactions.

Since its inception, there have been widespread protests and vocal opposition, with critics highlighting how the levy added financial burdens to vulnerable groups in society.

Many Ghanaians argued that the tax system failed to consider the impact on people who don’t have access to traditional banking services, relying heavily on mobile money as an alternative.

The passing of the bill to abolish the levy marks a significant step towards addressing these concerns.

However, the future of the bill now lies in the hands of President Mahama, who is expected to provide his assent shortly.

The president and his party, the National Democratic Congress (NDC), campaigned heavily on the promise to remove the levy, and many of their supporters are now eagerly awaiting the final decision.

When the question was put to Parliament, there was no opposition to the bill, with all members in favor of its passage.

This unanimity reflects a clear consensus on the importance of relieving Ghanaians from the burden of the E-Levy, further signaling the growing desire for more inclusive and sustainable economic policie