Finance Minister-designate Dr. Cassiel Ato Forson has reaffirmed his commitment to abolishing the Electronic Transactions Levy (E-Levy) and other nuisance taxes, in line with President John Mahama’s 120-day campaign promise.
According to Dr. Forson, the E-Levy poses a significant barrier to Ghana’s transition to a cashless economy. Introduced in 2022, the levy imposed a 1.5% charge on electronic transactions exceeding GH₵100 daily. Although later reduced to 1%, it has faced widespread criticism for being regressive and financially burdensome to Ghanaians.
Speaking during his vetting on Monday, January 13, Dr. Forson reiterated his determination to scrap the levy in the first budget presented by the new administration. He stated:
“The E-Levy is neither a direct tax, indirect tax, nor an excise tax. As a tax practitioner, I find it difficult to classify it. While I acknowledge that the E-Levy generates some revenue, it hinders our progress toward a cash-light economy and the growth of fintech. We must abolish the E-Levy.”
Dr. Forson emphasized his stance, saying:
“I am on record stating that I would abolish the E-Levy if given the chance. I stand by this position. If approved, I will include its abolition in the first budget. This aligns with His Excellency President Mahama’s commitment under our 120-day agenda.”
He also highlighted the need to address the revenue gap through expenditure cuts rather than introducing alternative taxes:
“It shouldn’t always be about revenue. Why not focus on reducing expenditure? Abolish the E-Levy, don’t replace it, and implement corresponding expenditure cuts.”
In addition to the E-Levy, Dr. Forson confirmed plans to eliminate the 10% betting tax, further demonstrating his dedication to reducing tax burdens on Ghanaians.
