Mahama administration abolishes E-Levy and Betting Tax to ease economic strain
The Mahama administration has scrapped the Electronic Transactions Levy (E-Levy) and the 10% tax on betting, aiming to reduce the financial strain on Ghanaians and support economic recovery.
Presenting the 2025 Budget Statement and Economic Policy to Parliament on March 11, 2025, Finance Minister Dr. Cassiel Ato Forson stated that the taxes, introduced by the previous administration, had failed to generate the anticipated revenue and had worsened the cost of living crisis.
“The removal of these taxes is part of our strategy to ease the cost of living and restore confidence in the economy,” Dr. Forson reportedly told lawmakers.
The E-Levy, first introduced in 2022, was met with widespread opposition. Many Ghanaians argued that it disproportionately affected low-income earners and small businesses.
Similarly, the betting tax faced pushback, especially from the youth, who saw it as an unfair barrier amid limited formal employment opportunities.
Beyond eliminating these taxes, Dr. Forson announced plans to introduce targeted tax reliefs for businesses and traders to boost economic expansion.
“We are developing a tax system that supports production and business growth without suffocating individuals and small enterprises,” he noted.
The government’s new approach will focus on enhancing revenue collection instead of imposing additional taxes, ensuring adequate funding for development projects without burdening citizens.
This tax policy shift aligns with the administration’s broader economic recovery strategy, aimed at restoring stability and fostering growth in Ghana.
