Ghana’s Finance Minister Cassiel Ato Forson has tabled eight bills in Parliament to repeal a slate of contentious taxes, including the controversial Electronic Transfer Levy (E-Levy) and betting tax, marking the first major step toward fulfilling the government’s campaign pledge to ease financial burdens on citizens and businesses.
The proposed reforms, submitted under a certificate of urgency, aim to abolish levies criticized for stifling digital transactions, inflating vehicle ownership costs, and hampering private sector growth.
The legislative push targets the Emissions Levy, Growth and Sustainability Levy, and Special Import Levy, among others, while restructuring income tax provisions and revenue administration protocols. Forson framed the overhaul as critical to “resetting” Ghana’s economy, which has grappled with inflation above 20% for much of 2024. “These reforms prioritize relief for ordinary Ghanaians and create a friendlier ecosystem for businesses to thrive,” he said during Thursday’s parliamentary session.
The E-Levy, introduced in 2022, drew widespread backlash for its 1.5% charge on digital transactions, which critics argued penalized low-income households reliant on mobile money services. Its repeal aligns with regional trends, as Nigeria and Kenya similarly dial back digital taxes to spur fintech adoption. Analysts suggest the move could boost Ghana’s stagnant economic growth, projected at 1.5% for 2025, by freeing up liquidity for consumer spending and SME investment.
Parliament is expected to fast-track the bills, though opposition lawmakers warn of potential revenue shortfalls. The government has yet to outline alternative fiscal measures to offset the estimated $400 million annual loss from scrapped taxes, raising questions about debt sustainability amid ongoing IMF bailout negotiations.
The reforms signal a sharp pivot from previous austerity measures, with Forson’s administration betting that tax relief will revive investor confidence and stabilize a currency that depreciated 30% against the dollar in 2024. As debates unfold in Accra, businesses and households await tangible proof that Ghana’s “pro-growth” agenda can deliver.
