In a landmark decision aimed at reducing the financial strain on Ghanaians and promoting digital transactions, the government has announced the abolition of the Electronic Transfer Levy (E-Levy) in the 2025 budget.
This move aligns with the administration’s commitment to easing economic hardships and fostering a more business-friendly environment.
Finance Minister Dr. Cassiel Ato Forson made the announcement during his budget presentation in Parliament, highlighting the positive impact of removing the 1% levy on electronic transactions.
“Mr. Speaker, we have listened to the concerns of the people. The Electronic Transfer Levy has been a significant burden on mobile money users and businesses. As part of our commitment to alleviating economic hardship, we will abolish the 1% E-Levy,” Dr. Forson stated.
Introduced by the previous administration, the E-Levy was met with widespread opposition due to its impact on financial transactions, particularly among small businesses and low-income earners. Critics argued that the tax discouraged the use of digital payments, stifled economic activity, and increased the cost of financial transactions.
The removal of the E-Levy is expected to encourage more digital financial transactions, boost mobile money usage, and provide much-needed relief for businesses that rely on electronic payments. This measure is also anticipated to enhance financial inclusion by making digital transactions more affordable and accessible to the wider population.
However, the government faces the challenge of filling the revenue gap created by the abolition of the levy. Dr. Forson assured Parliament that alternative revenue-generating strategies would be introduced to offset potential losses while maintaining fiscal stability.
“We are committed to prudent economic management. The removal of the E-Levy will be accompanied by measures to enhance tax compliance, improve revenue collection efficiency, and promote economic growth,” he added.
Industry stakeholders and financial analysts have welcomed the decision, noting that the removal of the E-Levy will accelerate Ghana’s digital transformation agenda. Experts believe that increased mobile money transactions and digital financial services will ultimately contribute to a broader tax base and long-term economic growth.
As the government takes steps to implement this policy change, citizens and businesses alike will be keenly observing how it impacts financial transactions and the overall economic landscape.
The abolition of the E-Levy marks a significant policy shift, signalling the administration’s focus on reducing the tax burden and fostering economic growth through digital financial inclusion.
Source: techfocus24.com