Government aims to raise GH¢4.3bn from E-levy and Covid-19 Levy before scrapping them

The government is targeting a total of GH¢4.3 billion in revenue from the e-levy and Covid-19 levy, two taxes that are set to be abolished this year. The expected revenue from these levies will be collected from January up until the laws formally removing them are passed.

In the 2025 budget statement, the government outlined that GH¢517.7 million will be generated from the e-levy, while GH¢3.8 billion is expected from the Covid-19 levy. Although the Finance Minister has already submitted an amendment to Parliament to scrap the e-levy, the removal of the Covid-19 levy may take longer, as discussions with the International Monetary Fund (IMF) are still pending. The IMF team is expected to arrive in mid-April to initiate talks on the levy’s removal.

Deputy Finance Minister, Thomas Nyarko Ampem, expressed optimism that the legislative process to scrap the e-levy could be completed by April 1, 2025. However, the timeline for the Covid-19 levy is more uncertain due to the required negotiations with the IMF.

Both the e-levy and the Covid-19 levy, introduced by the previous administration, have faced widespread criticism from businesses and individuals for their negative impact on incomes. Although these levies did not meet revenue expectations, raising less than GH¢5 billion annually, they provided much-needed funds for government projects. Now, the government hopes to capture remaining revenues before they are fully phased out. It is however doubtful if this target would be met, unless government intends to keep the Covid-19 levy for a longer period.

Source: theHigstreetjournal