The Ghanaian government has reaffirmed its commitment to scrapping the Electronic Levy (e-levy) and betting tax in the 2025 national budget. This announcement aligns with the administration’s campaign promise to ease the tax burden on citizens.
Deputy Finance Minister Thomas Nyarko Ampem, speaking on Channel One TV on Monday, March 3, 2025, assured the public that these changes would be reflected in the budget presentation scheduled for March 11.
Commitment to Policy Reform
Mr. Ampem’s remarks come as President John Dramani Mahama reiterates his pledge to abolish these levies, which have been widely criticized by both businesses and individuals.
“The President is fully committed to fulfilling his campaign promises, and that includes removing the e-levy and betting tax,” the Deputy Minister stated.
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Bridging the VAT Revenue Gap
Addressing concerns over revenue generation, Mr. Ampem emphasized that the government is exploring more effective tax collection methods rather than imposing burdensome levies.
“Our medium-term revenue strategy identifies a significant VAT gap. Currently, we are collecting only 39% of our potential VAT revenue, leaving a 61% shortfall. By enhancing compliance and efficiency in VAT collection, we can offset the revenue loss from eliminating these taxes,” he explained.
Background on the E-Levy and Betting Tax
The e-levy, introduced in 2022, initially imposed a 1.5% charge on electronic and mobile money transactions before being reduced to 1% due to public backlash.
Critics argued that the tax disproportionately affected low-income earners and discouraged digital transactions.
Similarly, the betting tax, implemented in 2023, enforced a 10% withholding tax on all betting, lottery, and gaming winnings. The levy sparked debate over its impact on the gaming industry and individuals relying on such earnings.
Path Forward
With the government prioritizing tax system efficiency, the upcoming budget is expected to outline alternative revenue mobilization strategies that focus on maximizing VAT compliance rather than relying on direct levies.
Ghanaians now await the formal budget presentation to see how these tax policy changes will take effect and reshape the country’s fiscal landscape.
