Finance Minister Ato Forson to Present Urgent Bill to Scrap E-Levy and Betting Tax
In a bold move aimed at alleviating the financial burden on Ghanaians, Finance Minister Dr. Cassiel Ato Forson is set to present a bill under a certificate of urgency to Parliament today, March 12, 2025. The proposed legislation seeks to abolish the controversial Electronic Transaction Levy (E-Levy) and the 10% tax on lottery and betting winnings. The announcement follows Dr. Forson’s budget presentation on March 11, where he outlined the government’s intention to repeal these taxes as part of broader economic relief measures. He emphasized that the levies have negatively impacted many Ghanaians, particularly low-income earners, increasing the cost of living and stifling economic activity.
Presenting the bill under a certificate of urgency signals the government’s commitment to swift action. The move ensures that Parliament expedites the legislative process, allowing for rapid approval and immediate implementation once signed into law by President John Dramani Mahama.
“We recognize the pressing need to ease the financial burden on our citizens. The removal of these taxes will restore disposable income to households and stimulate economic growth,” Dr. Forson stated during the budget session.
Background and Public Response
The E-Levy, introduced in 2022, imposed a tax on mobile money and electronic transactions, sparking widespread public opposition. Many critics argued that it disproportionately affected low-income earners who rely on digital financial services for everyday transactions. Similarly, the 10% tax on betting and lottery winnings has faced backlash from industry stakeholders and consumers alike.
Economic analysts have pointed out that these taxes discouraged financial inclusion and consumer spending. The government’s decision to scrap them aligns with its strategy to create a more progressive and inclusive tax system.
Parliamentary Outlook
The proposed bill has received initial support from various lawmakers and stakeholders who have long called for the removal of these levies. Dr. Gideon Boako, a Member of Parliament for Tano North, previously advocated for these changes, citing their negative impact on disposable income and economic participation.
While many anticipate a smooth passage, some opposition lawmakers may demand clarity on how the government intends to compensate for potential revenue shortfalls. The Finance Minister has assured the public that alternative revenue-generating measures will be introduced to sustain government projects and economic stability.
Implications for Ghanaians
If passed, the elimination of the E-Levy and betting tax is expected to:
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Increase disposable income for individuals and households.
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Encourage digital transactions and financial inclusion.
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Boost consumer spending and business activities.
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Ease financial pressure on businesses and individuals affected by the levies.
As Parliament deliberates on the bill, citizens, businesses, and economic observers keenly await the outcome, hopeful that this policy shift will bring much-needed financial relief.
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