Parliament has officially repealed the E-Levy tax imposed on electronic money transactions on Wednesday, March 26, 2025. The repeal will take effect once the President assents to it.
Presenting the Finance Committee’s report, Mr. Adongo explained that the Electronic Transfer Levy Act, 2022 (Act 1075), as amended, imposed a 1% levy on all electronic transactions, including mobile money payments, bank transfers, merchant payments, and inward remittances. While the tax aimed to expand the tax base and enhance domestic revenue mobilization, it was widely resisted due to its adverse effects on citizens’ disposable income.
Mr. Adongo further noted that the committee observed that the levy hindered efforts to promote a cashless economy, as it discouraged electronic transactions.
Also, the Minister for Finance, Dr. Cassiel Ato Forson, informed the committee that the government is currently undertaking tax reforms and implementing measures to improve disposable income. “One such measure is the repeal of the Electronic Transfer Levy Act. Removing the levy will increase household disposable income and reduce the tax burden on individuals,” he stated.
The Minister indicated that the levy’s implementation was also discriminatory, as individuals making electronic payments bore the tax burden, while cash transactions remained exempt, he added.
“The repeal of the levy will eliminate this inequality and encourage more people to use electronic payment methods. This shift is expected to help reduce inflation and improve the economy.” He concluded.
By: Mary Quartey
