The government of Ghana is preparing to abolish the e-levy and betting tax as part of its efforts to fulfill campaign promises, according to Deputy Minister of Finance, Thomas Nyarko Ampem. During an interview on Channel One TV on March 3, 2025, Ampem confirmed the removal of these contentious taxes would be incorporated within the national budget set to be revealed on March 11.
President John Dramani Mahama has consistently reiterated his commitment to eliminate the burdensome e-levy and betting tax, which have drawn widespread criticism from both individuals and businesses across the nation. "The President has made it clear ... to Ghanaians. That includes removing the e-levy and betting tax," Ampem stated, underscoring the administration's goal to deliver on its promises.
The e-levy, which was introduced back in 2022, originally imposed a 1.5% charge on mobile money transactions and other electronic transfers, later seeing this rate reduced to 1% due to public outcry. Conversely, the betting tax was instituted just last year, 2023, establishing a 10% withholding tax on all winnings from betting, lottery, and other gaming activities.
Both taxes were met with significant opposition, particularly from lower-income earners who felt these financial obligations placed additional burdens on their already strained resources. Responding to these concerns, the finance ministry has acknowledged the need for change.
Ampem elaborated on the government's future approach stating, "The medium-term revenue strategy estimates ... of our potential VAT revenue. By improving tax collection, we can make up for the revenue shortfall from removing these levies." According to the department, they have recognized a substantial value-added tax (VAT) revenue gap, estimating the government collects merely 39% of its potential VAT revenue, leaving a staggering 61% gap.
This strategic pivot toward enhancing VAT revenue collection forms the foundation of the government’s fiscal plans post-tax abolition. By closing the VAT gap, the government believes it can sustain fiscal operations without leaning on the unpopular e-levy and betting tax.
With the national budget approaching, the government's decision to withdraw from these taxes signals not just adherence to campaign promises, but also addresses public grievances. Given the intense scrutiny these taxes faced from citizens, many will likely welcome the government's shift toward reducing financial pressures.
Nevertheless, the central question remains: will this move lead to enhanced trust and more favorable public sentiment toward the current administration? Stakeholders are now awaiting the detailed budget announcement, which will provide clearer insights on how the government plans to manage its fiscal responsibilities without these levies.
On the horizon, the budget's presentation will shed light on the government's roadmap to recovery and the fiscal strategy following these tax abolitions. Optimistically, citizens hope improvements to VAT collection will be realized, as it may help stabilize the economy and promote growth where most needed.
This upcoming change marks not only the end of the e-levy and betting tax but also signals the government’s commitment to listening to its constituents and acting on their concerns. Such responsiveness is deemed necessary to regain the public's confidence as the country moves forward.