Scrapping of E-levy was a smart decision; it’s a win for Ghana – Prof. Bokpin

Economist and Professor of Finance at the University of Ghana, Professor Godfred Bokpin has lauded government for scrapping the Electronic Transaction Levy (E-levy).

Parliament on Wednesday, March 26, 2025 approved the Electronic Transaction Levy (Repeal) Bill, 2025 which endorsed the scrapping of the E-levy.

In an interview on TV3’s New Day, Thursday, March 27, 2025, Prof. Bokpin said repealing the levy was a “smart” decision by government as he argued that its passage lacked broader stakeholder consultation.

Prof. Bokpin noted that had the NPP government which introduced the levy consulted industry stakeholders prior to the passage, useful lessons would have been learnt to shape the policy.

He averred that scrapping of the levy is a “win for Ghana”.

“E-levy was a low moment in our democracy largely because there wasn’t proper consultation. I want to believe that if the government at that time had subjected the policy through the filtering process even at the Ministry of Finance and allow for independent evaluation over time, they would have learnt useful lessons.

READ ALSO: Parliament approves scrapping of E-levy

“I believe that it is a win for Ghana and E-levy would now exist in the textbooks and I think that it was a smart move. It is my considered view that regardless of whoever won the 2024 elections, the E-levy would certainly go,” he stated.

The E-Levy, which was initially introduced at 1.75% before being revised to 1%, imposed taxes on electronic transactions, including mobile money payments, bank transfers, and inward remittances.

The levy, introduced in 2022, faced vehement opposition from the public and various stakeholders who argued that it was a double taxation, worsened the financial burden on citizens and discouraged digital transactions.

Both the New Patriotic Party and the National Democratic Congress had promised to scrap the E-levy during their campaign ahead of the 2024 elections.

Finance Minister, Dr. Cassiel Ato Forson while presenting the 2025 Budget in Parliament assured Ghanaians that government will abolish the E-levy.

The repeal of the levy now awaits Presidential assent. However, the finance minister is optimistic that President John Mahama will assent to the recently passed bill abolishing the E-Levy, Emission Levy, and Betting Tax with the urgency they deserve.

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