By: Sarah Baafi
The Ghana Revenue Authority (GRA) has officially announced the abolition of the 1% Electronic Transfer Levy (E-Levy), marking a significant shift in the country’s tax policy. This follows President John Mahama’s assent to the Electronic Transfer Levy Act, 2022 (Act 1075) and its Amendment Act, 2022 (Act 1089). Effective from midnight on April 2, 2025, all financial institutions and payment platforms have been directed to cease applying the levy and reconfigure their systems to reflect a “no charge” status.
Introduced in March 2022 under the previous New Patriotic Party (NPP) administration, the E-Levy aimed to expand Ghana’s tax base by taxing electronic transactions such as mobile money and bank transfers. Initially set at 1.5%, it was reduced to 1% in January 2023 following public backlash. Despite these adjustments, the levy remained widely unpopular, with critics arguing that it disproportionately burdened low-income earners and stifled financial inclusion by discouraging digital payments.
The scrapping of the levy fulfills a key campaign promise by President Mahama and is expected to revive electronic transactions while easing economic pressure on citizens.
The GRA has mandated charging entities to process refunds for any deductions made after April 2 and submit detailed reports of refunds. Outstanding amounts collected before the abolition date must also be settled promptly.
Economic analysts view the repeal as a strategic move to boost financial inclusion and accelerate Ghana’s digital economy. However, concerns remain about potential revenue shortfalls, as estimates suggest Ghana could lose billions annually due to the abolition of both the E-Levy and other taxes like the betting tax. The government may need alternative measures to bridge fiscal gaps.
The GRA has assured citizens of smooth implementation while warning entities against non-compliance, which will attract legal penalties. Regular compliance checks will be conducted to ensure adherence. With this policy change, Ghanaians can now transfer money electronically without additional charges, signaling a new era for digital payments in the country.
