The Minister of Finance, Dr. Cassiel Ato Forson, has reaffirmed President John Dramani Mahama’s commitment to fulfilling campaign promises, announcing that the President is ready to sign into law the bills abolishing the controversial Electronic Transaction Levy (E-Levy), the Betting Tax, and other levies.
Dr. Forson highlighted the government’s determination to provide financial relief to Ghanaians, emphasizing that the repeal of these taxes is a significant step toward easing the economic burden on citizens.
“Parliament has just passed the Income Tax (Amendment) Bill, 2025, which abolishes the ‘Betting Tax’ and other levies. I have no doubt that H.E. President John Dramani Mahama will be more than willing to sign it into law without delay. Promise Kept!” the Minister wrote on his X (formerly Twitter) page.
Parliament Approves the Scrapping of E-Levy
Ghana’s Parliament approved the removal of the E-Levy as part of the 2025 budget statement on Wednesday, March 26. According to TV3’s Parliamentary correspondent Christian Yalley, this followed the passage of the Electronic Transaction Levy (Repeal) Bill, 2025.
Introduced on March 29, 2022, the E-Levy was a tax on electronic transactions aimed at generating revenue for national development. However, its implementation fell short of expectations, prompting the government to reconsider its necessity.
Dr. Forson previously announced plans to abolish the E-Levy and the 10% tax on lottery winnings, commonly referred to as the Betting Tax. These announcements were made during his presentation of the government’s maiden budget on March 11, 2025.
A Comprehensive Tax Reform Agenda
In addition to abolishing the E-Levy and Betting Tax, the government is reviewing other levies, including the Emissions Tax. Plans are also underway to scrap the COVID-19 Levy as part of efforts to streamline the Value Added Tax (VAT) system.
Dr. Forson assured Ghanaians that these reforms would not come at the expense of social protection programmes. Increased allocations have been made to key initiatives such as the National Health Insurance Scheme (NHIS), the Livelihood Empowerment Against Poverty (LEAP) Programme, the School Feeding Programme, and the Capitation Grant.
Under the LEAP programme, benefits have been adjusted to account for inflation, with the number of beneficiary households set to rise from 350,000 to 400,000 by July 2025. Funding for the programme has increased by 30.8%, from GH¢728.8 million to GH¢953.5 million.
Similarly, funding for the School Feeding Programme has been enhanced, with the cost of feeding per pupil per day increased by 33%.
“These interventions reaffirm the government’s commitment to supporting vulnerable groups and ensuring social equity,” Dr. Forson stated.
Call for Unity Amid Economic Challenges
While addressing Parliament, Dr. Forson emphasized the importance of national unity in addressing Ghana’s economic difficulties. He highlighted the success of the recently concluded National Economic Dialogue, the first of its kind in over a decade, as a vital platform for reflection and action.
“This dialogue is an opportunity to reflect on our economic reality, address pressing challenges, and chart a course toward a more prosperous future for all our citizens,” he remarked.
The Finance Minister acknowledged the ongoing economic challenges, including currency depreciation, hyperinflation, high taxes, and rising fuel and electricity prices. He stressed that while progress is being made, significant sacrifices are still required to stabilize the economy.
Commitment to Fiscal Discipline
Dr. Forson also lauded President Mahama’s dedication to fiscal discipline. Key measures include reducing the number of ministers from 123 to 60, cutting budgetary allocations to the Office of the President, and prohibiting first-class travel for government officials.
“President Mahama’s commitment to fiscal responsibility and prudent resource management is a testament to his vision for a more efficient and equitable governance structure,” the Minister concluded.
With the anticipated signing of these amendment bills, the government moves closer to delivering on its promise of creating a more inclusive and prosperous Ghana.
Story by: Mercy Addai Turkson #ahotoronline.com
