In a significant move aimed at alleviating financial pressures on citizens and fostering economic recovery, the Mahama administration has abolished the Electronic Transactions Levy (E-Levy) and the 10% tax on betting in the 2025 Budget Statement and Economic Policy.
Finance Minister Dr. Cassiel Ato Forson announced the decision during his presentation to Parliament on March 11, 2025, emphasizing that the taxes, introduced by the previous administration, had failed to meet revenue targets and exacerbated the cost-of-living crisis for many Ghanaians.
“The removal of these taxes is a strategic step to ease the financial burden on citizens, restore confidence in the economy, and create a more enabling environment for growth,” Dr. Forson stated.
The E-Levy, implemented in 2022, faced widespread criticism for disproportionately affecting low-income earners and small businesses, who argued that it stifled financial inclusion and economic activity. Similarly, the betting tax was met with resistance, particularly from the youth, who viewed it as an additional hurdle in an already challenging job market with limited formal employment opportunities.
In addition to scrapping these taxes, Dr. Forson outlined plans to introduce targeted tax relief measures for businesses and traders. These measures are designed to stimulate economic growth by reducing operational costs and encouraging investment.
“We are committed to creating a tax structure that supports production, business expansion, and job creation without overburdening individuals and small enterprises,” he explained.
Dr. Forson also highlighted the government’s focus on improving revenue collection efficiency rather than introducing new taxes. This approach aims to ensure adequate funding for critical development projects while minimizing the tax burden on citizens.
The 2025 budget reflects the administration’s broader strategy to prioritize economic recovery, enhance public trust, and create a more equitable and sustainable fiscal environment for all Ghanaians.
