Parliament has approved the abolition of the Electronic Transaction Levy (E-Levy) as part of the 2025 budget statement. This follows the passage of the Electronic Transaction Levy (Repeal) Bill, 2025, on Wednesday, March 26.
The Finance Minister, Dr. Cassiel Ato Forson, had earlier announced the government’s plan to scrap the E-Levy along with the 10% tax on lottery winnings, known as the betting tax. The announcement came during his presentation of the 2025 budget to Parliament on March 11.
Other levies, such as the Emissions Tax, are also set to be abolished, and the government plans to eventually scrap the COVID-19 levy as part of a broader review of the Value Added Tax (VAT) system.
Dr. Forson reaffirmed the government’s commitment to social protection programs with increased allocations to key initiatives.
Under the Livelihood Empowerment Against Poverty (LEAP) Programme, benefits have been adjusted to reflect inflation, and the number of beneficiary households will increase from 350,000 to 400,000 by July 2025.
The budget for LEAP has been raised by 30.8%, from GH¢728.8 million to GH¢953.5 million.
Funding for the School Feeding Programme has also been increased, with the cost of feeding per pupil per day rising by 33%.
“These interventions reaffirm the government’s commitment to supporting vulnerable groups and ensuring social equity,” Dr. Forson noted.
In his address, Dr. Forson stressed the need for national unity in tackling the country’s economic challenges.
He highlighted the impact of currency depreciation, hyperinflation, high taxes, rising fuel and electricity prices, and soaring interest rates, cautioning that the economic crisis is not over and further sacrifices will be needed to stabilise the economy.
The minister praised President John Dramani Mahama’s measures to promote fiscal discipline, including reducing the number of ministers from 123 to 60, cutting the Office of the President’s budget, and banning first-class travel for government officials.
Dr. Forson emphasised that these policies aim to ease the burden on citizens while fostering economic recovery and social equity.
