The Ghana Revenue Authority (GRA) has officially announced the abolition of the controversial Electronic Transfer Levy (E-Levy), marking a significant shift in the country’s financial landscape. This decision has sparked widespread discussions among mobile money (MoMo) users, businesses, and economists.
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What Was the E-Levy?
The E-Levy was first introduced and passed by Parliament in 2022, requiring a 1% tax on electronic transactions, including mobile money transfers. It was aimed at expanding Ghana’s tax base but faced strong opposition from the public and some political factions.
Why Was the E-Levy Abolished?
Despite its initial implementation, the levy remained unpopular. The government, in response to growing concerns and economic realities, decided to repeal the tax. MTN Ghana’s CEO, Stephen Blewett, clarified that while the government approved the repeal, telecom operators had to follow regulatory procedures before stopping deductions. Now, with official confirmation from GRA, MoMo transactions are free from the E-Levy tax.
On April 3, 2025, MTN Ghana officially announced the removal of the 1% E-Levy on all MoMo transactions following the government’s tax repeal. In a message sent to customers, MTN confirmed that the levy would no longer apply to MoMo transfers.
President John Dramani Mahama signed the new tax bill into law on April 2, 2025, effectively scrapping the E-Levy, along with the betting tax and emission tax.
Speaking at MTN House in Accra, MTN Ghana’s CEO, Stephen Blewett, assured Ghanaians that while the government had approved the repeal, telecom operators had to follow due processes before ceasing levy deductions.
“I can’t abolish E-Levy until I’m told to do it. If I do it ahead of time, the Bank of Ghana will catch me. So we have a process that has to be followed, and we will follow that process,” Blewett stated.
Is the E-Levy Still Being Deducted?
With the official abolition, deductions have ceased. However, during the transition, some users may have noticed continued deductions due to regulatory processes telecom operators had to complete. If you were charged during this period, checking with your service provider or financial institution may be necessary.
Impact on Mobile Money Transactions and Businesses
The removal of the E-Levy is expected to:
- Increase MoMo Transactions: Many users had reduced MoMo usage due to the tax, preferring cash transactions. The repeal could boost digital payments.
- Boost Small Businesses: With no additional transaction costs, businesses relying on MoMo can expect smoother and more affordable financial operations.
- Enhance Financial Inclusion: The E-Levy deterred some Ghanaians from using digital financial services. Its removal might encourage greater participation in digital banking.
What’s Next?
While the E-Levy is gone, Ghana still faces revenue challenges. The government may explore alternative taxation methods to compensate for lost revenue. Citizens and businesses should stay informed on future tax policies that may impact them.
Final Thoughts
The repeal of the E-Levy is a significant win for digital finance users in Ghana. As mobile money regains traction, businesses and individuals can benefit from a more cost-effective and seamless financial ecosystem. Have you noticed changes in your MoMo transactions? Share your experiences in the comments below!
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