He argued that, considering the government’s strategy to develop the digital economy, which is expected to grow faster than the traditional economy, the future is increasingly digital, and Ghana needs to create the right environment to support that growth.

“The NDC government, after campaigning against the E-levy and eventually scrapping it, views the E-levy as a misplaced priority. That view has not changed. The E-levy and the energy levy are completely different.

“The impact of introducing the E-levy would have harmed the future of the digital economy far more than this new levy will, even though both have value chain effects,” he said in an interview on Asempa FM’s Ekosii Sen show.

He stressed the need for fiscal discipline at this time and welcomed the removal of the E-levy to allow the digital economy to thrive without additional burdens.

“Given the current circumstances, including the recent strengthening of the cedi, one could make a case for this as a temporary intervention. What Ghanaians needed at that time was more fiscal discipline,” he added.

Prof. Bokpin acknowledged that the introduction of the energy levy is not an optimal solution but said it could provide some temporary relief.

“Considering the challenges in the energy sector and the broader impact on the economy, this levy targets the value chain and could bring some relief. It’s a difficult decision, but some interventions have helped stabilize the situation.”

He reiterated that his earlier concerns about the E-levy remain unchanged despite the introduction of the new levy.

“My argument during the introduction of the E-levy hasn’t changed with the introduction of this levy.”

His comments follow the passage of the Energy Sector Levies (Amendment) Bill, 2025, which authorizes a GH¢1 increase in petroleum product levies.

According to Finance Minister Dr. Cassiel Ato Forson, the measure aims to help settle $3.1 billion in energy sector arrears and raise an additional $1.2 billion to procure fuel for thermal generation in 2025.

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Customers have raised concerns over new or increased fees on transfers between personal bank accounts and mobile money wallets—charges that resurfaced almost immediately after the E-Levy was scrapped.

According to BoG data, the banking sector recorded a GHC 5 billion drop in total deposits between March and April 2025. While the Central Bank has not yet confirmed the cause of the decline, Governor Dr. Johnson Asiama has assured the public that affected banks will be engaged to ensure transparency and protect consumer interests.

“It is something that came to our attention that some banks were imposing these kinds of charges. We are looking into that. I am aware of one particular bank. This is very well noted and we are happy to look into the matter,” Dr. Asiama said during the recent Monetary Policy Committee briefing, in response to a question from Citi Business News’ Nii Larte Lartey.

Mobile Money Activity Surges

Meanwhile, mobile money platforms recorded a significant uptick in activity. In April 2025, the total value of mobile money transactions reached GHC 365.0 billion—a 3.8% increase from GHC 351.7 billion in March. This marks the highest monthly value recorded so far this year.

The number of transactions also rose from 764 million in March to 778 million in April, highlighting the growing reliance on mobile money for both personal and business use.

The BoG attributes this growth to increased mobile penetration, the expansion of agent networks, and the convenience of mobile-based financial services. These factors, it said, are helping deepen financial inclusion and drive Ghana’s transition toward a cash-lite economy.

Source : Citinewsroom 

The Chamber represents all Dedicated Electronic Money Issuers (DEMIs), including AT Money, G-Money, Mobile Money Limited, Telecel Cash, and Zeepay.

This development follows a directive from the Ghana Revenue Authority (GRA), issued on April 2, 2025, instructing all charging entities to cease applying the E-Levy. The directive aligns with the government’s decision to abolish the tax under the Electronic Transfer Levy (Repeal) Act, 2025 (Act 1128).

The EMIs Chamber confirms that all member institutions have complied with the directive and are actively processing refunds for any charges incurred. The refund process is expected to be completed by April 7, 2025.

“To prevent any further unintended charges, member institutions have implemented safeguards. In the unlikely event of an erroneous charge, it will be promptly refunded by the respective entity,” the Chamber stated.

The EMIs Chamber reiterated its commitment to customer trust, transparency, and full compliance with regulatory directives.

“We continue to support the growth of Ghana’s digital financial ecosystem and ensure a secure and fair environment for all users,” it added.

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This follows President John Mahama’s assent to the Electronic Transfer Levy Act, 2022 (Act 1075) and its Amendment Act, 2022 (Act 1089) on Wednesday, April 2, 2025.

GRA has directed all charging entities to immediately reconfigure their systems to ensure no charges are applied to transactions.

A statement issued by the Commissioner of the Domestic Tax Revenue Division, Edward Apenteng Gyamerah, on behalf of the Commissioner-General, confirmed that the GRA Electronic Transfer Levy Management and Assurance System (ELMAS) will automatically return a ‘no charge’ on all transactions posted from midnight.

The GRA has warned that entities continuing to charge the levy or failing to refund customers will face sanctions under the law.

A key part of the directive requires financial institutions and mobile money operators to initiate immediate refunds to customers who were charged the 1% levy beyond the official abolition date.

Additionally, the GRA has instructed all institutions to account for any outstanding E-Levy collected before April 2, 2025.

“Charging entities are to take the necessary steps to file and pay all outstanding E-Levy charged and collected on all transactions that occurred before April 2, 2025,” the directive stated.

To ensure compliance, the GRA has announced plans for regular checks on all financial institutions and payment platforms.

“Failure to comply with the above directives constitutes an offence, and sanctions will be imposed as prescribed by law,” the statement concluded.

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Other bills include the Income Tax (Amendment) Bill, 2025, Earmarked Funds Capping and Realignment (Amendment) Bill, 2025, Petroleum Revenue Management (Amendment) Bill, 2025, Public Financial Management Bill, 2025, Value Added Tax (Amendment) Bill, 2025, and the Gold Board Bill, 2025.

The signings which took place at the Jubilee House fulfill one of Mahama’s major campaign promises and aim to reduce the financial burden on Ghanaians while boosting economic growth

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According to him, the tax will be considered alongside the Value Added Tax (VAT) rationalisation process, which President Mahama’s administration promised to repeal.

In an interview with Joy News, Nyarko Ampem stated that President Mahama’s government is committed to abolishing all nuisance taxes, noting that the Electronic Transaction Levy (E-levy) and the betting tax have already been scrapped.

Responding to whether more taxes will be abolished, he said, “at this time it would be difficult to make any promises, but as the economy picks up, we wouldn’t mind to repeal taxes.”

“The COVID-19 levy will be considered alongside the VAT rationalisation process that we have been committed to do. So, when that process is done, I believe the COVID [levy] would also be removed. I’m looking at towards the end of the year if we are able to finish the rationalisation processes, we would be able to do that.”

He added that President Mahama is committed to fulfilling the promises outlined in the ruling National Democratic Congress’s (NDC) manifesto.

“So, we are working towards the rationalisation of all these promises he made.”

In the 2025 Budget, the government pledged to reform the VAT system by removing the COVID-19 Health Recovery Levy, treating health and education levies as VAT, and reducing eligible VAT-registerable traders.

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“We’ve heard from the stakeholders and the vendors, and I think Ghana is waking up,” he said in an interview on JoyNews’ PM Express on Wednesday.

“I congratulate the government for taking that decision.”

The controversial tax, introduced as part of revenue mobilization efforts, had been widely criticized for discouraging financial inclusion and imposing an unnecessary burden on taxpayers.

According to Prof. Bokpin, the policy failed on multiple fronts, including compliance costs, inconvenience, and economic logic.

“If you look at the last two and a half years of the NPP administration, almost every six months, you have to reconfigure your system to be tax-compliant. The compliance costs incurred by banks, financial institutions, and manufacturing companies—just to be compliant—are huge,” he explained.

He argued that the policy had not been subjected to the necessary scrutiny before implementation.

“Even at the Ministry of Finance, the tax policy unit—I’m not sure this one was really subjected to critical analysis, sensitivity analysis, and all of that. So if it was more emotionally driven, and the results are quite clear, then it tells you it was poorly designed.”

Prof. Bokpin lamented the economic irrationality of taxing transactions that were already within the tax net.

“You send money to your wife after having paid your taxes, and you have to pay a lot of tax on it again. I don’t want to say it’s evil, but it was backward,” he remarked.

He expressed optimism that the removal of the tax would revitalize digital financial transactions and enhance financial inclusion.

“I think the good news is that we will see MoMo uptake again. It’s a very direct way of formalizing the informal system and promoting financial inclusion,” he noted.

For Prof. Bokpin, taxing mobile money transactions was an ill-conceived move that contradicted economic principles.

“If you look at that channel and the role financial inclusion plays in promoting consumption and economic growth, you will not situate a tax along that path,” he argued.

He maintained that the tax’s failure was evident from the disparity between projected and actual revenue.

“If you see the actual versus the expected revenue, it tells you that this was not a policy that clearly went through the filtering process,” he said.

With the government reversing course, Prof. Bokpin believes this is an opportunity for better tax policy formulation.

“I have a different view on taxation, and I think we can do it right. But this particular tax? The numbers have shown—it did not work.”

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Speaking on JoyNews’ PM Express on Wednesday, March 26, Ampem explained that while Parliament has already passed the bill, it has yet to be transmitted to the President for his signature.

“Parliament is still in session, and so I doubt the Clerk has been able to transmit what we are doing to the President. There are a number of other bills that we are considering, so if they will be able to do that, it will have to be tomorrow or the day after,” he said.

He assured Ghanaians that once the President assents to the bill, the Finance Ministry will immediately direct the Ghana Revenue Authority (GRA) to halt the collection of the E-Levy.

“I understand the President may be out of town tomorrow, and so all things being equal, by Wednesday, he will assent to the bill. Once that happens, the Finance Ministry will get the GRA to discontinue collecting the E-Levy, and it’s going to happen as soon as possible.”

Ampem further noted that the GRA is already prepared for the transition, and implementation will take place swiftly after President Mahama’s approval.

“My discussions with the Commissioner General indicate that as soon as the President assents, they will take steps to comply,” he said.

The repeal of the E-Levy has been widely welcomed by Ghanaians, who strongly opposed the tax.

The levy, introduced in 2022 by the previous New Patriotic Party administration, imposed a 1.5% tax on electronic transactions, including mobile money transfers, bank transfers, and online payments.

Commenting on the timeline for the E-Levy’s full repeal, Ampem expressed confidence that it will take effect even before March comes to an end.

“I’m sure it will take effect before next week Friday,” the Deputy Finance Minister added.

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Speaking on JoyNews’ The Pulse show on Thursday, March 20, she shared her reasons for opposing the levy, emphasising how it failed to serve its intended purpose and ultimately burdened ordinary Ghanaians.

“I didn’t vote for the e-levy, and I have no regrets about my decision,” she explained. “I refrained from supporting it because I believed it wouldn’t benefit the people of Ghana. Instead, it would take away from their already limited resources, especially the most vulnerable members of society.”

“Ghanaians voted against us partly because of the E-levy,” she said.

She also highlighted how the e-levy negatively impacted those in low-paying jobs, particularly people who relied on mobile money [MoMo] to send funds to their families in rural areas.

“Individuals who were most affected were those working in low-paying jobs, who relied on sending money back to their families in the villages. These individuals were already struggling, and the e-levy took away the little they had. It was a tax on their hard-earned money, further deepening their difficulties,” she added.

Adwoa Safo also pointed out the contradiction between the government’s promises and the reality.

“We were told that by introducing the e-levy, Ghana could avoid going to the International Monetary Fund (IMF). However, in the end, we still ended up seeking IMF support. Despite implementing this tax, the government was unable to avoid the very financial assistance it promised we could manage without.”

Referring to Vice President Dr Mahamudu Bawumia’s 2024 election manifesto, in which he promised to remove the e-levy if elected, Adwoa Safo expressed a sense of vindication.

“I feel vindicated,” she said. “If the e-levy was truly a good tax, why did we still end up at the IMF? How can we justify taxing those who are already struggling, especially when it didn’t even prevent us from seeking IMF support?”.

Adwoa Safo concluded by reiterating that the e-levy failed to achieve its intended objectives and, instead, placed an additional burden on the very people it was meant to help.

“It just didn’t make sense,” she said. “The e-levy hurt ordinary Ghanaians, and in the end, it didn’t achieve what it promised.”

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In an interview on Asempa FM’s Ekosii Sen show, Adwoa Safo explained the internal conflict she faced between her personal convictions, her church, and her political party.

She said, “I was torn between my church and my political party. I had a personal conviction that the E-Levy would not help Ghana.”

She further stated that she didn’t see the E-Levy as a solution.

“I saw the E-Levy as not sitting well with the people, especially the poor.”

Adwoa Safo went on to share that she consulted with her people and her church members before making the final decision.

“I spoke with my people and my church family, and I knew I had to take a firm stand,” she added.

The former MP noted that if she had gone against her beliefs, she would not have been accepted back into her church community.

“If I had gone against that, no one in my church family would have accepted me,” she said, stressing the importance of staying true to her values.

Reflecting on the decision, she stated, “I’m looking for that day when someone can take a stand like I did, without fear or compromise.”

When asked if she communicated her decision to her party, Adwoa Safo replied, “I told those who needed to understand.”

She explained that the issue started from the Cabinet level and noted that even then Vice President Dr. Mahamudu Bawumia had expressed concerns about the E-Levy, with some even suggesting it should be scrapped.

“Even Bawumia wanted to scrap the E-Levy when he was campaigning. If it was a good thing, why would poor Ghanaians be subjected to this tax? It’s not good for the people” she said.

Reflecting on the criticisms she faced, Adwoa Safo revealed that she stood by her principled decision

“What my church, my father, and my people said… they didn’t listen, but I knew it would worry them in the end.”

She therefore acknowledged that the government’s failure to listen to concerns about the E-Levy contributed to their downfall.

“That’s why I made that principled decision. They lost because the E-Levy was part of their downfall.”

Adwoa Safo had been the subject of criticism for her absence from Parliament during the Akufo-Addo administration, with some accusing her of holding the NPP Majority Caucus to ransom, particularly during the passage of the E-Levy bill.

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According to him, the tax was distortionary and not fit for purpose.

Dr Ampaabeng made these remarks on Accra-based Channel One TV, highlighting the pledge of the 2024 New Patriotic Party (NPP) presidential candidate, Dr Mahamudu Bawumia, to scrap it.

He further described the E-Levy as a “money transportation tax,” deducting charges on money transfers without adding economic value.

However, he acknowledged the revenue gaps the removal would create, urging the government to find sustainable alternatives.

“We don’t have anything against the removal of the E-Levy. We are already in the financial year, and it was going to happen. This has been in their manifesto, and we also had it in our manifesto that we were going to remove it.

“It is a distortionary tax, so I have no qualms about the removal. It will only create a loophole, and how to fix the loophole should be the conversation. But as a tax expert and someone who understands the distortions such taxes create, I am happy it is gone,” he stated.

The former minister further proposed a shift towards e-commerce taxation as a more effective way to broaden the tax net.

“Electronic-based taxation or e-commerce taxation is the angle to take. I was hoping that this government or future governments would look at it as part of broadening the tax net, taxing digital market players, which is part of electronic transfer taxes but not in the form of the current E-Levy,” he suggested.

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The bills also seek to uncap statutory funds such as the National Health Insurance Levy (NHIL) and the GETFund levy.

These proposed tax repeals and amendments align with the National Democratic Congress’s (NDC) manifesto pledge to ease the financial burden on Ghanaians.

The proposed bills include Electronic Transfer Levy (Repeal) Bill, 2025, Ghana Infrastructure Investment Fund (Amendment) Bill, 2025, Revenue Administration (Amendment) Bill, 2025, Special Import Levy (Amendment) Bill, 2025, Emissions Levy (Repeal) Bill, 2025, Income Tax (Amendment) Bill, 2025, Growth and Sustainability Levy (Amendment) Bill, 2025, and Earmarked Funds Capping and Realignment (Amendment) Bill, 2025.

This move follows the Finance Minister’s announcement during the presentation of the government’s first budget statement on March 11, 2025.

In addition to scrapping the E-Levy and betting tax, the government has also proposed abolishing the Emissions Tax and making amendments to other levies that have been deemed excessive.

Speaking on JoyNews PM Express on Tuesday, March 11, Dr Forson stated that he expects Parliament to consider the bills under a certificate of urgency to ensure their swift passage.

He expressed confidence that the process would be smooth due to the simplicity of the repeals, adding that each of the taxes to be scrapped only requires a single clause in the legislative process.

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“Repealing these taxes will be straightforward. Each repeal is just a single clause. Removing the betting tax, the E-Levy, and others will be a simple process,” he assured.

He further stated that as revenue-related bills, they qualify to be presented under a certificate of urgency, which allows for expedited consideration.

Dr Forson also assured that once Parliament passes the bills, President John Dramani Mahama will sign them into law immediately, marking a significant step in fulfilling the government’s promise to alleviate the tax burden on citizens.

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In its internal survey conducted after the roll-out of the levy, the association says a significant number of its members abandoned their businesses owing to several levy deductions on transactions either through the banks and/or between fellow agents.

The survey conducted between 2022 and 2023 sampled over 1,000 respondents across the country, where they were questioned on the impact of the levy on their working capital, their profit margins before and after the levy rollout, the volumes of transactions made daily, and concerns from customers following the implementation of the levy.

General Secretary of the Association, Evans Otumfuo, explained an appreciable number of mobile money agents in the country had their working capital reduced drastically due to the hefty taxations.

“Agents were subjected to various forms of levy deductions. Our funds also deal with transfer from one bank to another, or even amongst agents. All of these, there is e-levy applied to them. We lost our working capital. It reduced drastically,” he told Luv FM’s Emmanuel Bright Quaicoe, in an interview.

He continued that, “going round we saw that our people have closed down their shops, even today, amid the other challenges we are faced in the business”.

The erstwhile Akufo-Addo administration introduced the electronic transaction levy after scrapping road tolls in 2022 as an alternative revenue generation source.

But it received public backlash as some Ghanaians called for its abolishment.

During his 2025 budget presentation to parliament, Finance Minister, Dr. Cassiel Ato Forson announced scrapping of the ‘controversial’ levy as part of the economic policy of the ruling National Democratic Congress (NDC).

The association has welcomed the decision by the new government to scrap the levy which it says was “counterproductive” to their businesses.

The MoMo vendors are eagerly anticipating the abrogation of the E-levy Act as they hope the new decision would positively impact their businesses.

“It [e-levy] hasn’t been in the interest of our business so far. So, if it has come to the bold notice of the government to abolish it, we really receive it as good news to the business and we want to really see it being implemented. We are not in support of it. We want to commend government for taking such a bold decision,” Mr. Otumfuo said.

Finance Minister Dr. Cassiel Ato Forson announced the move on PM Express on JoyNews on Tuesday, March 11, stating that the bills would be laid before Parliament under a certificate of urgency.

“Tomorrow morning, I will be going to Parliament to submit the bills, and I expect Parliament to take them through a certificate of urgency,” Dr. Forson said.

The move follows his announcement during the presentation of the 2025 Budget Statement on March 11, in which he also proposed abolishing the Emissions Tax and other levies.

Dr. Forson expressed confidence that the repeal process would be swift due to the simplicity of the bills.

“Repealing the taxes will be one clause each. Repealing the betting tax is very easy. The E-Levy and all of those things we are repealing are quite easy,” he noted.

He emphasized that the bills qualify for expedited passage under the Constitution.

“It’s a revenue bill, and under the Constitution, you have any way to lay finance bills under a certificate of urgency,” he explained.

Dr. Forson assured that once Parliament passes the bills, President John Dramani Mahama will sign them into law immediately.

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Exclusive PHOTOS from the 2025 Budget Presentation

Read some reactions below:

Betting tax abolished
Emissions tax abolished
E-levy abolished
Ɛyɛ zu🥳🤝🙌#AbanPapaAba

— Sherif Mohammed (@King_MoSherif) March 11, 2025

Seriously the Npp is a party of deceitful nation breakers. Cos why are you against the E-levy cancellation, when you candidate promised same, if you win power? You are not normal if you support these people 🫵

— Lady Pearl ❤️🩺 (@Ladyemmy_) March 11, 2025

Wait E-Levy is abolished?
Good at something good from the NDC

That levy was really a slap on Ghanaians face

— DJ switch ✊🏾❤️ (@GiftyNkem) March 11, 2025

The e-levy is a good way of taking tax from African citizens(Ghana) because Africans rarely pays tax compared to other countries. One would say then again most other countries are developed. Still think it could have been tweaked in a much better way(0.5%), e-levy ensured like… https://t.co/q1P1U09Lfq

— APK (@ApkJnr) March 11, 2025

I believe the e-levy and betting taxes should be maintained but channeled and perhaps renamed to free shs levy and get fund to help revive the education of Ghanaians.
Covid and emission levies should be maintained also and channeled into development funds https://t.co/SPQpHAod5w

— peteash (@peteashbull) March 11, 2025

This was stated in KPMG’s 2025 Pre-Budget Survey submitted to the Finance Ministry.

According to the survey, some respondents recommended leveraging technology as a key initiative to help close the shortfall in government revenue.

“KPMG notes that abolishing the E-levy and Covid-19 levy could result in a revenue shortfall of at least GH¢6.4 billion.

“Beyond the revenue measures proposed by respondents, the government should also leverage technology to enhance property rate administration and collection, as well as review taxation within the digital and e-commerce sectors. Additionally, strengthening public financial management systems, closing loopholes in public procurement, and reducing wasteful spending are critical to improving fiscal sustainability,” the report stated.

The firm also emphasized that for Ghana’s proposed 24-hour economy to succeed, it should focus on industries that naturally thrive with round-the-clock operations, increased consumer demand, and global market competitiveness. These industries include manufacturing, transport and logistics, healthcare, retail and hospitality, and digital services.

Most respondents in the survey believed that new policy initiatives in the budget could serve as a foundation for economic recovery.

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Speaking in an interview on Asempa FM’s Ekosii Sen show, Dr. Boako clarified that while he is not against taxation, he believed other approaches could have been explored, even though the levy yielded some revenue.

According to him, his boss and former Vice President, Dr. Mahamudu Bawumia, also opposed the levy, which is why he pledged to abolish it had he been elected president.

The E-Levy was introduced in May 2022 by the New Patriotic Party (NPP) government as a means of generating revenue for development projects. However, ahead of the 2024 elections, Dr. Bawumia vowed to scrap the levy—a promise that drew criticism from his opponents.

Dr. Boako, however, defended the former vice president, insisting that his stance was consistent with his earlier opposition to the levy.

“E-Levy was very unpopular, and my stance, just like Bawumia’s before its introduction, was that it was needless. And for me, indeed, it was needless,” he stated.

He acknowledged that many doubted Dr. Bawumia’s promise because the NPP government was still in power at the time.

“Of course, people didn’t believe him because his government was in power, and they expected it to have been abolished then,” he added.

Dr. Boako also reminded President John Mahama of his campaign pledge to scrap the E-Levy, emphasizing the need to fulfill promises that aim to reduce the financial burden on citizens.

While calling for an alternative revenue mobilization strategy after the levy is removed, he stressed the need for a more comprehensive approach to addressing Ghana’s fiscal challenges.

• I’ve never said scrapping e-levy or betting tax will violate IMF Programme – Gideon…

In its bi-monthly Economic Outlook, the economic think tank stated that the budget should also include measures to ensure stable and less costly power to enhance the competitiveness of the economy.

Additionally, the IEA emphasized the need for a budget that acknowledges the lack of fiscal space to support economic development due to limited government revenue.

“While taking steps to increase tax revenue, it is also important to recognize the potential of the natural resource sector to contribute to development. Tapping this potential will require changes to the natural resource fiscal regimes to increase Ghanaian ownership and benefits,” the report noted.

It further stressed that priority should be given to local value addition to natural resource products to maximize revenue from the sector.

The 2025 Budget is expected to align with the Economic Credit Facility (ECF) programme by the International Monetary Fund (IMF).

Specifically, the IEA stated that the ECF’s fiscal consolidation stance is expected to be followed to sustain macroeconomic stabilization efforts.

In this regard, it noted that the overall fiscal deficit is appropriately set to decline further to -2.7% from the projected -3.5% in 2024, while the primary surplus will increase to 1.5% from 0.5%.

“The tight fiscal stance is in line with the debt sustainability trajectory envisaged under the programme,” the IEA pointed out.

The think tank added that staying on this path is necessary to avoid another painful debt restructuring and to foster investor confidence in the economy.

E-levy, COVID tax, and betting tax to be scrapped

In line with the government’s pre-election promise, several taxes are expected to be abolished, including the E-levy, COVID tax, emissions tax, and betting tax.

The IEA indicated that scrapping these taxes will ease the financial burden on households and businesses. However, it highlighted that the resulting revenue shortfall is expected to be offset by reinforced efforts to close tax loopholes, broaden the tax base, and strengthen tax administration, among other measures.

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Speaking at a Minority press conference, Dr. Boako clarified his stance, stating that he has never made such a claim and that the matter has been misrepresented.

“I have never said anywhere that scrapping the betting tax and e-levy will be in violation of the IMF programme,” Dr. Boako insisted.

He explained that the decision to remove these taxes aligns with the New Patriotic Party’s (NPP) manifesto promise, which was championed by the party’s flagbearer, Dr. Mahamudu Bawumia.

According to him, the NPP is committed to fulfilling this pledge as part of its vision for economic relief and tax reform.

Dr. Boako further highlighted that Dr. Bawumia has consistently opposed taxes of this nature, referencing a 2020 interview on Peace FM where the NPP leader shared his views against the e-levy.

He stressed that the party’s stance is rooted in its long-standing policy positions, not in any potential conflict with the IMF programme.

The Tano North MP reiterated the importance of honouring campaign promises, particularly those aimed at easing the financial burden on citizens.

He called on stakeholders to focus on the broader objectives of Ghana’s economic recovery rather than misconstruing the party’s intentions regarding tax policies.

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Speaking to the media on Monday, 13 January, following the vetting of Finance Minister nominee Dr Cassiel Ato Forson, Dr Boako emphasised the potential implications of such a policy shift.

During his vetting, Dr Ato Forson revealed that the Mahama administration plans to abolish the e-levy and betting taxes in its first budget.

However, Dr Boako criticised the approach, stating that it could result in significant revenue shortfalls that the government would struggle to address.

He argued that such shortfalls would conflict with the requirements of the International Monetary Fund (IMF), which demands robust revenue generation to meet debt servicing obligations.

“I think by and large, he [Ato Forson] has done his part, but unfortunately, it wasn’t enough,” Dr Boako stated. “For instance, he was asked how he plans to make up for the revenue shortfalls from scrapping the taxes, and he said he would cut expenditure. However, cutting expenditure does not address the problem because the IMF focuses on debt service to revenue ratio, not debt service to expenditure ratio.”

Dr Boako further explained that while expenditure cuts might offer temporary relief, they do not resolve the fundamental issue of generating enough revenue to match debt servicing obligations.

He warned that the IMF would ultimately insist on finding new sources of revenue, which could lead to the introduction of additional taxes.

“We don’t want a situation where you give with the right hand and take with the left hand,” he remarked, urging policymakers to consider the long-term impact of their decisions.

The Tano North MP called for a more comprehensive approach to addressing Ghana’s fiscal challenges.

He cautioned against creating false hope by abolishing taxes only to replace them with alternative levies, urging the government to be transparent and pragmatic in managing the country’s revenue needs.

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Speaking before the Appointments Committee of Parliament on Monday, January 13, Dr. Forson argued that the current betting tax has failed to achieve its intended objectives and should be scrapped.

“I insist that the betting tax must be abolished, and as Finance Minister, I will abolish it in my first budget because it has failed,” Dr. Forson declared.

He stressed that the tax had not produced the expected revenue and had instead burdened the sector without benefiting the broader economy.

Dr. Forson also reiterated his strong stance on the controversial e-levy, saying his position on the matter had not changed.

“My position on the e-levy is well known. I have written articles about it, and my position has not changed,” he stated. He raised concerns about the classification of the levy, calling it neither a direct nor an indirect tax. “I don’t know how to classify it,” he added, questioning its efficacy in the current fiscal system.

The Finance Minister-designate emphasised that he would work towards a more sustainable and effective tax regime that fosters economic growth while relieving unnecessary burdens on the public.

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Speaking on JoyNews’ AM Show on Friday, January 10, Dr Asante explained that while the E-Levy remains unpopular, its complete removal could harm the country’s financial stability.

According to him, rather than abolishing the E-Levy entirely, the government should focus on reducing the tax burden gradually.

“The best approach is to reduce the incidence of taxation over time, as these are the low-hanging fruits that can be effectively utilised,” he said.

While acknowledging the discomfort caused by the 1.5 per cent levy, he pointed out that it has become a vital source of revenue for the state.

“We have lived with this burden, and we are moving on,” Dr Asante remarked, noting that the country already bears several other taxes that place a strain on the public.

He suggested that a gradual reduction of the E-Levy would make it easier for more people to comply, which in turn would increase participation and government revenue.

Dr Asante also emphasised the importance of generating domestic resources for the country’s development. “You can never build the capacity of the state without generating your own resources,” he said.

He cautioned against relying too heavily on external funding, stressing the need for innovative solutions, such as increasing internally generated funds, to support long-term growth.

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Mark Badu-Aboagye also want the new Mahama administration to address the high rates of VAT.

Speaking on Joy News’ PM Express, Business Edition with George Wiafe, he underscored the burden these taxes place on businesses and their cascading impact on consumers.

“For me, the first tax I expect President-elect John Mahama to take out is the COVID-19 levy. We’ve said it over and over again at the Chamber of Commerce, there is no need for this tax anymore,” he stated.

He also criticised the e-levy, describing it as a “brilliant idea” marred by poor implementation.

“Probably, they also have to take [the e-levy] out because it’s been promised. Now, we are going to hold them accountable for the promises they’ve made to the business community because the taxes themselves are killing businesses,” Mr Badu-Aboagye said.

Harsh Business Environment and VAT Concerns

Mr Badu-Aboagye described the current business environment as “extremely harsh,” attributing much of the strain to Ghana’s tax regime.

He highlighted the cumulative effect of the Standard VAT, which is 15%, and additional levies that push the total rate close to 21%.

“These levies translate directly into the cost of production and have a cascading effect on prices and consumers,” he explained.

“The VAT needs to be reviewed.”

He shared an anecdote from a recent meeting with a Chamber member who expressed frustration over the crippling effect of taxes on their business.

“Yesterday, we met one of our members, and he was complaining about taxes. He told us how import duties and several other taxes have made it nearly impossible for his business to thrive,” Mr Badu-Aboagye recounted.

Holding Leaders Accountable

While welcoming the pledges made in political party manifestos to reduce taxes, Mr Badu-Aboagye expressed caution.

“It’s one thing saying it, and it’s another thing doing it. We were here in 2016 and 2017 when the NPP said they were going to remove nuisance taxes. They did scrap about 15 taxes, but they came back in harsher forms,” he stated.

The GNCCI, he said, will hold the incoming government accountable to its promises.

“Businesses need relief, and we’ll ensure these promises are kept,” he added.

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In its State of the Ghanaian Economy Report, ISSER suggests that these levies, projected to generate over GH¢5 billion in revenue, be gradually phased out as part of the 2025 budget instead.

Highlighting the significant revenue expected from the E-levy and COVID-19 levy—estimated at GH¢2.1 billion and GH¢3.172 billion, respectively—ISSER’s report argues for a cautious approach.

“Scrap E-levy (GH¢2.1bn), COVID-19 Levy (GH¢3.172bn), Betting Tax – What is the alternative?” the report asks, urging policymakers to consider carefully how and when to eliminate these levies without jeopardizing Ghana’s commitments under the IMF program.

The recommendation underscores the institute’s concern over Ghana’s fiscal stability.

“These levies should be factored into the 2025 budget but not removed immediately,” ISSER advises, warning that a hasty repeal could derail progress on Ghana’s IMF-backed economic recovery plan.

ISSER’s call for a phased approach reflects the delicate balance between public relief and fiscal responsibility.

With Ghana’s economy under pressure from high inflation and exchange rate depreciation, the levies provide a crucial revenue stream.

According to ISSER, the removal of these taxes should align with broader fiscal policies designed to maintain economic stability.

Additionally, the report raises questions about the Betting Tax, which remains undefined but could serve as a supplementary revenue source.

ISSER encourages the government to explore such avenues as part of a comprehensive revenue strategy that can sustainably replace the E-levy and COVID-19 levy while adhering to IMF guidelines.

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The NPP members, led by their leader, Alexander Afenyo-Markin, on Thursday declared a conditional boycott of the house following Speaker Alban Bagbin’s declaration of four seats vacant.

Three of the affected seats belong to the NPP, with the fourth held by the NDC. The decision has engendered a new leadership crisis in parliament, with the NDC which has been the Minority now claiming to be in the Majority.

And according to Dr. Ayine, the “new regime” will kick in on Tuesday when sitting resumes, and on behalf of the electorate, they in the NDC will do what is possible and just, including repealing acts that are ‘repealable’.

Speaking on Citi FM Friday, Dr Ayine wasted no time in pointing at the Electronic Transfers Levy, otherwise called E-Levy, as a policy likely to face repeal proceedings.

Arguing that the issues of who constitutes Majority or Minority in Parliament is by way of numerical strengths and are “as clear as daylight”, he said if there are issues that require simple majority rather than a two-thirds majority, they will proceed in the absence of the NPP members who say they will only return to the house upon a ruling by the Supreme Court on an injunction application against the Speaker.

Said Ayine; “We will be filing private members motions.. We will repeal the obnoxious pieces of legislation they have passed, the taxes such as e-Levy and so on and so forth. In fact we will start implementing our manifesto on Tuesday.”

“You mean you’ll start doing your own thing”, suggested host Bernard Avle, to which Dr. Ayine responded; “No, it’s not our own thing, we are working on behalf of the people of this country, we were elected to work on behalf of the people of this country so if they stay out, we have the mandate of the people to repeal e-Levy and change the fortunes of the people of this country instantaneously. So they should stay off, we will do business.”

The opposition NDC has hardly hidden its opposition to the Electronic Transfer Levy (e-Levy) since its proposal and subsequent implementation in the 2022 budget to generate revenue from electronic financial transactions, including mobile money transfers, bank transfers, merchant payments, and inward remittances

On November 17, 2021, Finance Minister Ken Ofori-Atta presented the 2022 budget, which included the introduction of a 1.75% e-Levy on electronic transactions.

The NDC, led by its Minority in Parliament, strongly opposed the e-Levy, calling it regressive and burdensome for Ghanaians, especially the poor and those who rely on mobile money services. They argued it would increase the cost of living and hurt small businesses and low-income earners.

As Parliament debated the budget and the e-Levy, NDC MPs staged a strong resistance, and  on December 20, 2021, tensions escalated in Parliament when MPs attempted to vote on the e-Levy. The session ended in a physical brawl between NPP and NDC MPs, with the Speaker of Parliament, Alban Bagbin, exiting the chamber during the chaos.

The Minority alleged that the government had bypassed proper procedures to pass the e-Levy without consensus.

Following the clashes in Parliament, the NDC intensified its opposition to the e-Levy by organising public forums, demonstrations, and press conferences.

They argued that the government should explore other revenue-generating avenues instead of taxing citizens through electronic transactions.

Key NDC leaders, including the party’s presidential candidate John Dramani Mahama, spoke against the levy, calling it exploitative.

The NDC also capitalised on growing public dissatisfaction, rallying various civil society groups, trade unions, and individual citizens to voice their opposition to the tax.

Many Ghanaians, particularly mobile money agents and small business owners, expressed concerns that the e-Levy would negatively impact their livelihoods.

On February 1, 2022, the Minority in Parliament boycotted a Finance Committee meeting called to discuss the e-Levy. They maintained that the levy was not in the best interest of Ghanaians and should be scrapped or at least significantly reduced.

The NDC threatened to challenge the e-Levy in court if it was passed under contentious circumstances.

They questioned the legality of the government pushing through the tax without broader consultation and parliamentary consensus.

Despite the NDC’s strong opposition, the e-Levy was passed by Parliament on March 29, 2022, in a session marked by the absence of NDC MPs. The government managed to pass the bill with the NPP Majority in the house.

Following the passage, the NDC continued its opposition through public demonstrations. On May 1, 2022, a large protest dubbed the “Yentua” demonstration (“We Won’t Pay” in Akan) was organised in Accra, led by the NDC and various activist groups.

Then in June 2022, three NDC MPs—Haruna Iddrisu (Minority Leader), Mahama Ayariga, and Samuel Okudzeto Ablakwa—filed a lawsuit at the Supreme Court, challenging the constitutionality of the e-Levy’s passage. They argued that the bill was passed without the Speaker of Parliament and without the required quorum.

On July 27, 2022, the Supreme Court ruled in favour of the government, dismissing the NDC’s case against the e-Levy’s passage. The court held that the government had followed proper procedures in passing the tax.

As the government proceeded with the implementation of the e-Levy, the NDC maintained its opposition, vowing to repeal or review the levy if they won the 2024 general election.

John Dramani Mahama has promised to reverse the e-Levy if the NDC came to power, citing it as an unfair burden on the populace.

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This is compared with GH¢1.031 trillion the same time in 2023.

This significant growth in mobile money transactions is astonishing and provides an opportunity for the country to deepen financial inclusion.

However, it is also shocking why the nation is roping in much from the Electronic Transaction Levy.

According to the September 2024 Summary of Economic and Financial Data by the Bank of Ghana, the value of mobile money transactions in January 2024 stood at GH¢198.4 billion, but dropped to GH¢195.8 in February 2024.

It again fell slightly to GH¢181.9 billion in March 2024 but shot up to GH¢203.0 billion in April 2024. It went up again to GH¢234.3 billion in May 2024 but fell slightly to GH¢224.0 billion in June 2024.

It however surged consistently to GH¢264.9 billion in July 2024 and GH¢273.6 billion in August 2024.

Source: Joy Business

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He described Dr Bawumia’s decision as a “bold step”.

However, Prof Bokpin says Dr Bawumia as Vice President, can use his existing influence within the New Patriotic Party to push for the removal of the e-levy and other taxes now, rather than waiting until he is elected.

In a radio interview with Accra-based Peace FM on Monday [August 18, 2024] Prof Bokpin noted that many economists and concerned Ghanaians had advised against the implementation of the e-levy, but the government chose to proceed.

He welcomed Dr Bawumia’s commitment to scrap the tax, emphasizing that the e-levy “has no future in this country,” regardless of who assumes power.

NPP Manifesto

While launching the Election 2024 manifesto of the New Patriotic Party (NPP) in Takoradi on Sunday, August 18, 2024, Dr Bawumia announced that when given power in the Presidential election slated for December 7, 2024, he will scrap the e-levy.

The e-levy was introduced in May 2022 by the Akufo-Addo-led government to generate more revenue to undertake government projects in the country.

Reacting to Dr Bawumia’s pledge to scrap the tax, Prof Bokpin pointed out that the opposition National Democratic Congress (NDC) and other presidential aspirants have also pledged to stop the e-levy if given the mandate.

Source: Myjoyonline

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In addition, he pledged to eliminate certain taxes that have become burdensome for businesses and households.

Mahama assured that his administration would not subject businesses to endless tax audits or harassment by the Economic and Organised Crime Office (EOCO).

The E-levy, introduced in 2022 to enhance domestic revenue mobilization, initially set at 1.75 percent, faced significant criticism and was subsequently reduced to 1.5 percent and then further to 1 percent.

Speaking at the 8th Ghana CEO Summit in Accra on Monday, May 27, the former President also promised to cut down on excessive government expenditures.

Mr. Mahama said reducing the tax burden and streamlining government spending would create a more favorable environment for businesses and help alleviate financial pressures on households.

“We will do this by pruning the huge government expenditures, preventing waste and corruption, and boosting revenues by expanding the tax net. We will simplify the VAT and streamline its collection. We will abolish the e-levy and some taxes that have become a burden on businesses and households. We will not burden you with endless tax audits and harass you with EOCO.”

He indicated his resolve to stabilise the economy and restore the currency.

Mahama disclosed his intentions of launching an urgent economic recovery and fiscal consolidation to be held within 100 days of his assumption of office.

“The number one priority will be stabilising the economy and restoring a stable currency by launching an urgent economic recovery and fiscal consolidation plan following a national economic dialogue to be held within one hundred days of assumption of office.”

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GRA in a statement admitted that the outage may have led to some Charging Entities deducting E-Levy for transactions that are ultimately exempt.

”The attention of the Ghana Revenue Authority (GRA) has been drawn to issues of wrongful charging of E-Levy on some electronic transactions following the recent disruptions in internet connectivity in the country.

“The GRA acknowledges that the internet outage has had an impact on the real-time routing of some electronic transactions by Charging Entities to the Electronic Transfer Levy Management and Assurance System (ELMAS),” the statement explained in parts.

Meanwhile, GRA has assured steps have been taken to mitigate the challenges to ensure a seamless E-Levy collection process.

Find below the statement:

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Vice-President Bawumia has made it clear that he intends to abolish the electronic transactions tax, known as the E-Levy, if elected president of Ghana.

During his national address on Wednesday, February 7, Dr. Bawumia reiterated his stance against taxes on electronic transactions, affirming his commitment to abolishing the E-Levy if elected president.

“To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will therefore be abolished,” Dr Bawumia announced.

In a subsequent interview with Accra-based Asaase Radio on Thursday, February 8, Rohullah Khomeini stated that Bawumia has consistently maintained that the E-Levy undermines financial inclusion efforts.

According to Khomeini, the promise to abolish the E-Levy is rooted in policy conviction rather than mere attempts to gain popularity.

“It is not for crowd-pleasing, these are ideas well thought through by the flagbearer of the NPP. There is that recognition that we have to confront the cost of living issue, which every Ghanaian is concerned about…”

“And so, he believes that if we are determined to formalise our economy and transition from an informal way of doing things into the digital space, we must not have a tax system that will discourage people from wanting to participate in the digital space,” he said.

The e-levy, which kicked in on Sunday, May 1, 2022, sees a 1.5% levy on e-transactions. It covers mobile money payments, bank transfers, merchant payments, and inward remittances. There is an exemption for transactions up to GH¢100 per day.

The tax, according to the government, was part of its efforts to widen the tax net and generate revenue for development.

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Vice President Dr Mahamudu Bawumia has pledged to abolish the controversial levy on electronic transactions, commonly known as the E-Levy if elected into power.

Addressing Ghanaians on Wednesday, the New Patriotic Party’s presidential candidate explained that he wants to make Ghana a cashless economy as soon as possible not only to foster economic growth but fight corruption.

However, to achieve this goal, people need to be encouraged to use more electronic channels of payment, he stated.

“To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will therefore be abolished,” Dr Bawumia announced.

The e-levy, which kicked in on Sunday, May 1 2022, sees a 1.5% levy on e-transactions. It covers mobile money payments, bank transfers, merchant payments, and inward remittances. There is an exemption for transactions up to GH¢100 per day.

The tax, according to the government, was part of its efforts to widen the tax net and generate revenue for development.

However, Dr Bawumia stressed the importance of transitioning Ghana to a cashless society, citing transparency as a powerful tool against corruption.

He highlighted the benefits of cashless societies, noting that increased electronic payments lead to greater traceability and reduced corruption.

“I would like to bring Ghana close to a cashless economy in the shortest possible time. So far the Bank of Ghana has made a lot of progress in this direction by putting in place a lot of the systems and infrastructure required. These include mobile money interoperability, merchant interoperability, Universal QRCode payment system, Gh-Link, debit cards, Ezwich, and GhanaPay.”

“We have put in place the necessary infrastructure for Ghana to go cashless. Recently the Bank of Ghana has completed a pilot of a digital version of the Ghana cedi note in Sefwi Wiawso. This is known as central bank digital currency (CBDC) or e-cedi. The e-cedi is designed to work online and offline and will be launched by the Bank of Ghana in due course.”

“In my humble opinion, the e-cedi, with appropriate privacy protections, will be the ultimate weapon in our fight against corruption because it will provide transparency, reduce the risk of fraud, robbery, tax avoidance, and money laundering since it will be easy to track the movement of money and identify suspicious activity. The e-cedi will quicken the pace of Ghana’s move towards a cashless or near cashless society.”

Describing the E-Levy as a “nuisance tax” in an interview on Citi TV he said “We need to ask ourselves, are we getting enough from it? If we are not getting enough from it, then it is a nuisance tax, and we should scrap it.”

The Ghana Chamber of Telecommunications implemented the revised E-Levy rate of 1% on January 11, 2023.

This was after the government, during the 2023 Budget and Economic Policy Statement, reviewed the 1.5% E-Levy downwards to 1% effective January 2023.

The electronic transfer levy (E-Levy) accrued GH¢455.58 million for the first half of this year, missing its target by 53.64 per cent.

This is against a target of GH¢982.85 million, representing a shortfall of GH¢527.27 million of the half-year target of expected collection.

According to the Summary of Economic and Financial Data (May 2022), active mobile money subscribers saw a decline in April to 18.6 million from the 18.9 million recorded the previous month.

The mobile money industry also lost 4,000 active agents, as their number declined to 454,000 in April from the previous month’s 458,000. The value of transactions also dropped by GH¢2.8 billion within the period under discussion.

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According to him, Ghana can raise revenue through the introduction of narcotics, gaming, and lottery taxes.

“The lottery tax is very simple, you use tax receipt numbers to play the lotto and every week, one tax receipt number will win and you can give a pickup to the person. So everybody now comes in because the person wants to win a pickup and so they start issuing receipts.

“And so they formalize the informal businesses. Countries have done it, Malaysia and the rest and they jumped, over 500 percent increase in revenue. I discussed this with the Minister.”

“Look at gaming, the Gaming Commission, there is a lot of money in the gaming sector but you are not taxing them, many countries are taxing them and they are getting a lot of revenue.”

Mr Bagbin was of the view that insurance taxes for tourists and other foreigners can generate revenue for the country.

“Look at insurance, there are countries that have moved on now and said any person flying into their country you have to take medical insurance and that is factored into your ticket. So in case you land and there is a problem they just rush you to the hospital and treat you because you are insured. Nigeria and the rest, they have taken that, that is another way of raising revenue. The other one is like fumigation, you are in the plane and they do fumigation when you come out on your luggage, they put some $7 on fumigation, that is another way of earning revenue.”

To him, the use of Indian hemp popularly known as ‘wee’ in medicines can be capitalized with the introduction of taxes under the Narcotics Control Commission Act.

“One of the areas is narcotics, wee because they use it in pharmaceuticals. Now you go for a surgical operation and most of the things they inject you with are from wee, the place becomes numb so when they cut you don’t feel anything at all. We put a small percentage 0. something when we were passing the Narcotics Control Commission Act.”

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According to him, government must abolish the two taxes because it opted for an IMF bailout.

Reacting to the President’s State of the Nation address on Covid-19 and IMF bailout, he said government must show its sincerity and sensitivity to the plight of Ghanaians by doing away with the two taxes.

“Ghanaians also expected the awful E-levy to be abolished since his government has opted for an IMF bailout. President Akufo-Addo must be sincere and sensitive to the plight of the suffering Ghanaians,” he tweeted.

Mr Ablakwa in his tweet, urged his colleagues in parliament to “take advantage of the mid-year budget review to expunge those two obsolete taxes.”

Below is his tweet:

pic.twitter.com/oPZR4Rxo33

— Sam Okudzeto Ablakwa (@S_OkudzetoAblak) May 28, 2023

Government introduced e-levy to help generate revenue internally for developmental projects instead of going to the International Monetary Fund (IMF).

In a final address to the nation on the measures in the COVID-19 fight on Sunday, May 28, President Nana Akufo-Addo declared that the pandemic was over.

President Akufo-Addo reasssured Ghanaians that his administration did not use the COVID-19 pandemic as an avenue to engage in corrupt activities.

He emphasized the US$3b IMF bailout will not be an instant panacea for the country’s challenges.

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He explained that government introduced E-levy as a replacement for road tolls for the construction of roads, hence, E-levy should be scrapped if road tolls are collected.

“They just wake up suspend it and say that that’s the end of it. And told us that they were introducing the E-levy because they had removed road tolls. Are we to now understand that because road tolls are coming back we will stop paying e-levy?”

“I think this is the question we must be legitimately asking and demanding proper answers because one of the reasons and justifications for this poorly thought-out policy was that we were going to pay E-levy, E-levy was going to be used for roads and so no need for road tolls.
“Now we’re not bringing just the road tolls, we’re bringing it back with an almost 100% increase in all road tolls. Did we go or did we come?” he quizzed.

The lawmaker questioned the basis for government’s reinstatement of the road tolls.
He indicated that even if parliament approves the reintroduction, most toll booths need to be
refurbished.

“On what basis are you bringing back the road tolls? The problem is you have left these toll booths to deteriorate so it then means that taxpayers’ money is going to be used again to rehabilitate those toll booths. Many of those toll booths have been run down.

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“And so it’s not as though even if we approve this in parliament today the workers can just go sit there. They are now going to spend money again. Award contracts to their friends and cronies to go and rehabilitate the toll booths.”

He went on: “First they deprived us of at least GHc72 million every year then they spent money to decommission the toll booth.”

“Now we’re going to spend money to rehabilitate the toll booths now we’re going to pay more as citizens,” he said on Accra-based Metro TV.

Since the introduction of the E-Levy in the 2022 budget, Ghanaians have kicked against the agenda which seeks to mobilise additional revenue for the country.

This has forced the government to revise the rate from the initial 1.5 downward to 1% effective today, January 11.

However, citizens say their burden has not been shed off, as they demand a total scrapping of the E-Levy.

Check out some reactions:

It’s, therefore, baffling why the government cannot accrue significant revenue from the tax on electronic transfers, despite the immense growth in mobile money transactions.

In October 2021, total mobile money transactions were estimated at ¢737.6 billion. Comparing that figure to the same period in 2022, the transactions have shot up by an additional ¢95.7 billion.

A recent survey by the Center for Economics Finance and Inequality Studies revealed that many consumers do not pay E-Levy despite undertaking mobile money transactions. This is because they reach a gentleman’s agreement” with the vendors to enable them to deposit cash into the wallet of the receiver through a “Mobile Money” merchant account.

In this case, the government will therefore have to listen to concerns by many and bring down the rate of the e-levy further to at least 0.5% in order to prevent consumers from avoiding payment of the levy, whilst raking in more revenue from the levy.

Meanwhile, the biggest mobile money transactions executed so far in 2022 was the month of October 2022 in which ¢100 billion transactions were recorded.

It surpassed the ¢99.1 billion recorded in July 2022.

From the data, Mobile Money transactions have been surging since the implementation of E-levy in May 2022.

It went up to ¢77.4 billion in June 2022, from ¢71.4 billion in May 2022, but remain relatively same at ¢77.2 billion in July 2022.

It however shot up significantly by ¢9.9 billion to ¢87.1 billion in August 2022, and subsequently went up marginally to ¢88.8 billion in September 2022.

It reached a significant ¢100.2 billion in October 2022, about ¢11.4 billion increase.

Total Mobile Money transactions hit 833.3 billion in October 2022 despite E-levy

Despite the presence of the Electronic Transaction Levy (E-Levy), total Mobile Money transactions in the first 10 months of this year grew by 12.9% year-on-year to ¢833.3 billion, the latest Summary of Economic and Financial Data by the Bank of Ghana has revealed.

It’s therefore baffling why the government cannot accrue significant revenue from the tax on electronic transfers, despite the immense growth in mobile money transactions.

In October 2022, total mobile money transactions were estimated at 737.6 billion. Comparing that figure to the same period this year, the transactions have shot up by an additional 95.7 billion.

A recent survey by the Center for Economics Finance and Inequality Studies revealed that many consumers do not pay E-Levy despite undertaking mobile money transactions. This is because they reach a gentleman’s agreement” with the vendors to enable them to deposit cash into the wallet of the receiver through a “Mobile Money” merchant account.

In this case, the government will therefore have to listen to concerns by many and bring down the rate of the e-levy further to at least 0.5% in order to prevent consumers from avoiding payment of the levy.

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Meanwhile, the biggest mobile money transactions executed so far was the month of October 2022 in which 100 billion transactions were recorded.

It surpassed the 99.1 billion cedis recorded in July 2022.

From the data, Mobile Money transactions have been surging since the implementation of E-levy in May 2022.

It went up to ¢77.4 billion in June 2022, from ¢71.4 billion in May 2022, but remain relatively same at ¢77.2 billion in July 2022.

It however shot up significantly by ¢9.9 billion to ¢87.1 billion in August 2022, and subsequently went up marginally to ¢88.8 billion in September 2022.

It reached a significant ¢100.2 billion in October 2022, about ¢11.4 billion increase.

Mobile Money Transactions in 8 months of 2021 and 2022

 October          80.0                        100.2

TOTAL 737.6 833.3

Finance Minister, Ken Ofori-Atta, announced this while presenting the 2023 budget statement in Parliament on Thursday.

Mr Ofori-Atta explained the reduction forms part of a seven-point agenda aimed at restoring macro-economic stability and accelerating economic transformation.

He added the review is to “aggressively mobilise domestic revenue.”

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The E-Levy covers electronic transactions, including mobile money payments, bank transfers, merchant payments and inward remittances.

But the policy has been widely criticised amid claims that the government is insensitive to the plight of Ghanaians.

According to him, the delay in passing the tax policy impacted the confidence of the international community in the economy which led to loss of investors.

Appearing before the Parliament’s Adhoc Committee on Friday, Mr Ofori-Atta said the delayed passage of the e-levy also contributed to the ensuing downgrade in Ghana’s sovereign credit rating in January 2022, “which resulted in Ghana not being able to issue its Eurobonds it traditionally does in the first quarter.”

Mr Ofori-Atta said the Minority frustrated the efforts to raise revenue through the levy to support the financial stability of the economy.

“We saw the dire consequences when the House for months refused to pass the major revenue generation item introduced by this government to support the fiscal stability of the economy.

“Sadly the Minority Leader when this government was compelled to approach the Fund (IMF) this year, triumphantly took credit for frustrating governments efforts to meet its half-year revenue,” he said.

Ghana’s economy is currently under pressure, which has resulted in a high cost of living and what some have described as ‘galloping inflation.’

The country’s currency is also volatile in relation to the US dollar and other major trading currencies worldwide.

But the Finance Minister said the e-levy was borne “out of this heightened need to mobilise resources sufficient for managing the preeminent challenges of our time, physical consolidation, debt sustainability and reduce the unemployment.”

It would be recalled that the passage of the e-levy which requires 1.5% on all electronic transfers met stiff opposition from the Minority Group in Parliament.

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It was however rolled out by the Ghana Revenue Authority (GRA) on May 1, after the E-levy Bill was passed by Parliament and subsequently assented to by President Akufo-Addo.

Meanwhile, the Finance Minister has apologised to Ghanaians for the hardship being suffered in recent times.

According to him, the brunt borne by the populace due to the ongoing economic turmoil is unfortunate.

“Let me use this opportunity to say to the Ghanaian people what I believe, with courage, every Finance Minister around the world may wish to say to their people now. I am truly sorry,” he told the committee.

This estimate is greater than the total revenue the government anticipates from the e- levy for 2022.

The anticipated revenue from the e-levy for the year 2022 was ¢6.96 billion or $1.15 billion, which was later revised to ¢4.5 billion and again to ¢611 million.

The report revealed that based on the standard law of demand, if the relative price decreases from 1.5% to 0.5% e-levy, the quantity demanded of “Mobile Money” transfers will increase.

Therefore, the government would be better off reducing the e-levy to 0.5% instead of the present 1.50%.

The report also forecasted a 21.4% rise in the total revenue to about ¢3.20 billion in 2023 and about ¢3.63 billion in 2024.

“In 2024, we expect the projected revenue to reach ¢3.635 billion. The forecasted revenue is expected to reach ¢4.043 billion by 2025 which will be greater than the government’s expected revenue for the same period.”

It warned that keeping the e-levy rate at 1.5% will deprive the government from generating more revenue from the tax.

Many Mobile Money transactions avoiding E-Levy

 It cited an example that in many commercial transactions, the parties involved negotiate based on a “gentleman’s agreement” where the sender deposits cash into the wallet of the receiver through a “Mobile Money” merchant account to avoid the payment of its corresponding e-levy charge.

“In many commercial transactions, the parties involved negotiate based on a “gentleman’s agreement” where the sender deposits cash into the wallet of the receiver through a “momo” merchant account to avoid the payment of its corresponding e-levy charge.”

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Initial revenue estimate of ¢4.5bn overambitious

In conclusion, it said the e-levy is a good tax handle that must be maintained considering the dire fiscal stance of the country.

It, however, added that the initial revenue estimate of ¢4.5billion at 1.5% is overambitious and has the potential of negatively affecting Ghana’s Cash-Lite Agenda.
Again, the strategy of using the e-levy as a conduit to get the informal sector to contribute to national revenue has failed, as the informal sector is the most active group exploiting the current e-levy loopholes.

Similarly, the growth in the number of active mobile money agents has been on a decline. However, the growth rate for the active agents has been higher compared to the active mobile money customers

According to him, if this trend continues, it could derail government’s revenue target from the telecom sector, for this year.

Speaking at the Bank of Ghana’s Regulatory Sandbox Engagement Forum, Mr Ashigbey urged players in the financial sector to help the government with innovative solutions geared towards generating revenue to the State.

“Truth be told, if you look at the data of E-Levy currently the way it is situated is slowing down government’s own digital agenda and possibly also have a negative impact on government’s own revenues. But, we need to do the thinking for government”.

He called for support for government to be able to generate more revenue.

“Support government to be able to generate a lot more revenue from the digital environment. If we don’t do that, they will be thinking for us. You will have things like the E-Levy, the way it’s been formatted coming up.

“So I urge all of us that let’s take advantage of this opportunity that has been given to us to find ways in which we can support government with the challenges that abound. And also to help our people within this economy we find ourselves,” he admonished.

Finance Minister, Ken Ofori-Atta, disclosed this in the 2022 Mid-Year Budget on Monday, July, 25, 2022.

The new tax which many Ghanaians have opposed vehemently has only raked in ¢93.7 million, from the ¢1.46 billion target for the first half of this year.

However, the value of Mobile Money transactions which the levy largely is obtained has not dipped significantly, according to data from the Bank of Ghana.

In the month of May 2022 that E-Levy was implemented, Mobile Money transactions declined by18.58% to ¢71.4 billion.

However, in the month of June 2022, the transactions via Mobile Money went up to ¢77.4 billion, an 8.4% growth.

According to data from the Bank of Ghana, Mobile Money transactions grew consecutively until April 2022 when it dipped slightly.

The Mobile Money transactions in the first four months of this year were January 2022 (¢76.2 billion), February 2022 (¢76.8 billion), March 2022 (¢90.5 billion) and April 2022 (¢87.7 billion).

There had been calls by sections of the public for the levy to be scrapped, especially as Ghana engages the International Monetary Fund (IMF) for what the government has described as “balance of payment support”.

A leading member of the ruling New Patriotic Party (NPP), Gabby Asare Otchere-Darko, in a post on his personal Twitter handle, also indicated that the tax, since its implementation, has generated only 10% of the estimated revenue, causing many Ghanaians to call for its abolishment.

However, the ISSER boss held the view that government should rather reduce the charges instead of scraping it off.

According to him, that move would help the government to raise the needed revenue even if it means the government tightening some of the concessions given to stakeholders.

“I expect the Minister of Finance to look at the E-Levy for instance as it is not yielding the needed revenue. I think we have to revise the rate downwards, even if we have to tighten some of the concessions given to different stakeholders. So I expect the Finance Minister to reduce it, to help us raise the needed revenue,” he said at a workshop in Accra.

Currently, Ghana’s revenue projections are underperforming, while high debt levels and high expenditure continue to plague the economy.

The government had implemented the e-levy with the hope of raising some revenue internally to cushion the economy but information from the government’s quarters indicates that the levy was performing woefully.

The Fund’s officials are led by Mission Chief for Ghana, Carlo Sdralevich as the fate of Ghana’s financial future is tabled for discussion amid hue and cry from the public over the ever-increasing cost of living.

The Finance Ministry earlier revealed that the engagement will be a seven-day activity with the IMF officials, government’s Economic Management Team and the Presidency.

According to Presidential Affairs Correspondent, Elton Brobbey, the crunch meeting started this afternoon in Accra.

JoyNews sources say the meeting will discuss various aspects of the economy including expenditure, market reserve management, domestic arrears, expenditure controls and fiscal reporting.

Other issues to be tackled are; monetary and inflation developments, data gathering and reconciliation, revenue among others.

Government has already indicated that its flagship programmes will not be canceled despite the stringent scrutiny and potential conditionalities that accompany such bailouts.

This has attracted attention from critics as beneficiaries and policymakers look to the outcome of the engagement in this regard.

On revenue, JoyNews sources reveal that the electronic transactions levy (E-Levy) will come under scrutiny by the team as part of the revenue mobilsation analysis.

Per reports, the team will look at the design of the e-levy, estimated yield, the mobilisation measure and the nature of its implementation on Thursday.

Fiscal returns for the first half of the year and the 30% expenditure cuts, financial sector payments, the wage bill, internally generated funds will be high on the agenda as well.

Meanwhile, the Finance Ministry is hopeful that the engagement will help restore macroeconomic stability, safeguard debt sustainability, and promote inclusive and sustainable growth as well as address the impact of the war in Ukraine and the lingering pandemic.

Gabby Otchere-Darko said although the tax policy is not living up to its intended expectation, it is not a bad tax.

According to him, Ghanaians are just apprehensive about the payment of taxes.

“If the e-levy is so far not bringing in the estimated revenues, it does not mean it is a bad tax. It means Ghanaians simply do not want to pay taxes,” he said in a tweet on Monday, June 27.

If the e-levy is so far not bringing in the estimated revenues, it does not mean it is a bad tax. It means Ghanaians simply do not want to pay taxes. @@

— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022

He had earlier revealed that the E-levy has generated less than ¢60 million, close to two months after its implementation.

He said the levy has failed to live up to the expectations of the government.

“What options are open to the government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m,” he said in a tweet on Monday, June 27.

He said the levy has failed to live up to the expectations of the government.

“What options are open to the government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m,” he said in a tweet on Monday, June 27.

What options are open to government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m.

— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022

This particular tweet follows several others from him on whether the government should seek support from the International Monetary Fund (IMF) or not.

Although, Mr Otchere-Darko said he is not against a move to the IMF, he is opposed to them offering “peanuts” to the country which comes with harsh conditions.

The AG also argued that all Minority Members of Parliament were present in the Chamber of Parliament when the bill was passed into law.

Three National Democratic Congress Members of Parliament led by Haruna Iddrisu, the Minority Leader, filed a suit at the Supreme Court challenging the constitutionality of the passage of the E-Levy.

However, the AG in its statement of case filed at the Supreme on May 30, responding to the suit, asserted that, “there has been no breach of Article 104(1) of the 1992 Constitution of Ghana.”

It said, “All the members of the minority recorded as having attended proceedings of Parliament on that day, were present in the Chamber of Parliament when the approval of the policy of a new tax – the E-Levy was conducted.

“There is nothing before the Court indicating the contrary,” the AG stated.

Below is AG’s position on the facts:

Defendant by recounting the facts as contained in the Plaintiffs’ Statement of Case does not in any way amount to admission or confirmation of the accuracy of same.

In essence, the Defendant asserts that there has been no breach of Article 104(1) of the 1992 Constitution of Ghana.

Furthermore, Defendant denies that processes leading to the passage of the E-levy Bill on 29th March 2022 and the subsequent act of the President of the Republic of Ghana in giving assent to same were tainted by illegality or unconstitutionality.

Defendant says that at the time the votes were taken at relevant stages of the passage of the E-levy Bill, the quorum requirement as provided in Article 104(1) of the 1992 Constitution of Ghana was satisfied.

The official record of the Thirty-Seventh sitting of the First meeting of the Eighth Parliament held on Tuesday, 29th March, 2022 (the “Votes and Proceedings”), shows that the E-levy Bill was taken through the various constitutionally stipulated procedure in article 106 of the Constitution and that, at least one-half of all validly elected members of Parliament were present in Parliament when the question whether to approve the policy of the E-levy Bill was put after the second reading of the Bill, before same was subsequently passed into law.

Attached to the affidavit in verification and marked as Exhibit “AG1” is a copy of the Votes and Proceedings for Tuesday, 29th March 2022.

Respectfully, the defendant says that the question of whether to approve the policy of the E-levy Bill (taken at the second reading of the Bill) is most important, as that question is what decides whether the E-levy as a statutory policy in the Republic of Ghana will come into being or not.

Approval of same implies that E-Levy as a new tax regime or policy for the State, has come into existence and Parliament may then proceed to examine the specific clauses in the new law.

All the members of the minority recorded as having attended proceedings of Parliament on that day, were present in the Chamber of Parliament when the approval of the policy of a new tax – the E-Levy was conducted. There is nothing before the Court indicating the contrary.

Exhibit AG 1 further shows the question of whether to approve.

Electronic Transfer Levy Bill was put and the motion consequently agreed.

22.ExhibitAG 1 further shows that the question whether to approve the Electronic Transfer Levy Bill was put and the motion consequently agreed to by the entire House.

There is no indication of a headcount or a call for “division” to determine who were “for” or “against” the motion. As recorded on Exhibit AG 1, the motion was agreed to, and it was by a voice vote.

3. Significantly, there is no indication from the Votes and Proceedings of Parliament for 29th March 2022 that, a walkout was recorded, and if a walkout was recorded, how many members of the minority walked out and at what stage they walk out.

On the contrary, the defendant’s contention that the question of whether to approve the E-Levy or not was put by the Rt. Hon Speaker of Parliament at a time that the members of the minority were present in the Chamber, is confirmed by the Hansard of 29th March 2022, which confirms the specific contributions by each member of Parliament who spoke on that day. Attached to the affidavit in verification and marked as “Exhibit AG 2” is a copy of the Hansard for 29th March, 2022.

4. The defendant further says that the E-Levy Bill was duly passed by Parliament in accordance with article 104(1) after the third reading. At least 137 members of Parliament, who constituted the constitutionally prescribed one-half of members of Parliament were present when same was passed.

There is nothing before the Court to show a violation of the Constitution or any of the known rules of procedure of Parliament prescribed for the passage of legislation.

5. The Defendant relies on the facts as properly recounted above to resolve any legal issue(s) arising from this suit.

Reliefs being sought

The Plaintiffs per their Writ invoke the original jurisdiction of the Supreme Court for the following reliefs:

a. A declaration that on the authority of the Supreme Court case of Justice Abdulai v Attorney-General, Writ Np. J1/07/2022 (hereinafter referred to simply as Abdulai v Attorney General) dated 9th March, 22022, the Transfer Bill, 2021 is in contravention of Article 104(1), and therefore null, void and of no effect whatsoever.

b. A declaration that in accordance with Article 104(1) of the 1992 Constitution of Ghana and on the authority of Abdulai v Attorney General, on the 29th day of March 2022, when the Rt. Hon. Speaker of Parliament put the question to the house for the Third Reading of the Electronic Transfer Levy Bill, 2021, Parliament lacked the required quorum to pass the said Electronic Transfer Bill, 2021;

c. A further declaration that on account of relief (f) above the purported Third reading and subsequent passage of the Electronic Transfer Levy Bill, 2021 is in contravention of Article 104(10 of the Constitution, and is therefore null void and of no effect.

d. An order of the Honourable Court setting aside the purported passage of the Electronic Transfer Levy Bill, 2021, by the 136 Members of Parliament of the Majority Caucus present in the Chamber of Parliament on the 29th March 2022 as being unconstitutional, null and void;

e. Any other relief and/or order(s) the Honourable Court may deem fit.

According to her, “the only time the Minister’s absence bothered the Presidency was when the Minister was needed as a Parliamentarian to cast her vote for the E-Levy bill to be passed.”

A move, the activist says is unfair, particularly at a time when the marginalised and the vulnerable are suffering.

Speaking on JoyNews’ Newsfile, Madam Agbenyo said the Ministry needs a leader who will initiate innovative interventions to cushion the vulnerable and prospective beneficiaries.

“More than ever the Ministry of Gender is leaderless with a caretaker minister who is undoubtedly overwhelmed with her own responsibilities.

“In such difficult times which we all agree, the most vulnerable of us, the most marginalized of us require innovative interventions from government to survive but there is no Ministry taking care of us,” she said on Saturday.

On October 6, 2021, President Akufo-Addo extended the leave of absence from office, for the Gender Minister.

The Dome-Kwabenya MP’s leave, which she sought for personal reasons, was supposed to have ended on August 31, 2021.

However, the former Procurement Minister was unable to resume and requested an extension. It did not, however, state when she will resume.

 “In her absence, and until further notice, President Akufo-Addo has directed the Minister for Sanitation and Water Resources, Cecilia Abena Dapaah, to act as caretaker Minister,” the Presidency said.

Earlier this year, the lawmaker came under fire for neglecting her Parliamentary duties amid speculations that she has vowed not to return until given a leadership role in the House.

Miss Adwoa Safo was last seen in Parliament in December 2021, when she appeared in the House to dismiss claims by the Minority Caucus that she was impersonated.

She has since not returned to the Chamber. Her action has infuriated her colleagues who have accused her of blackmailing government with a list of demands, including the Deputy Majority Leader post.

This has infuriated some colleague MPs and members of the NPP who are calling for her removal.

Meanwhile, the First Deputy Speaker, Joseph Osei-Owusu has indicated that the Majority Caucus does not factor Dome-Kwabenya MP, Sarah Adwoa Safo, into its deliberations.

According to the Bekwai MP, all avenues to get the absentee MP to return to the House have proved futile.

As a result, the Majority in Parliament has resolved to conduct parliamentary business, going forward, without recourse to the Dome-Kwabenya MP.https://e813cb15c68ec4c18033c178d139ac0f.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

Speaking on Kumasi-based Pure FM, Mr Osei-Owusu said, “in our strategy, we have taken it as going to rescue a kidnapped person, you presume she is dead, but if you go and she is alive, then it is God’s grace, and it adds to your gains, so that is our approach.

“So as it stands now, we don’t count her as part of us,” he stated.

The governing New Patriotic Party (NPP) leadership has admitted that the Dome-Kwabenya MP’s absence is affecting the party and government business.

John Boadu, the party’s General Secretary, told Joy FM that with Ghana’s hung Parliament, the Gender Minister’s absence is adversely affecting government’s business in Parliament.

He also mentioned that the party is currently considering measures including triggering the constitutional provision to remove her as MP and declare her seat vacant.

To date, the legislator has not been seen in Parliament, neither has she visited the Ministry which she leads.

Meanwhile, in April, her Aide, Nana Dubin Kwapong revealed that she will return to the House when Parliament resumes from recess.