Finance Minister presents 8 bills to parliament to abolish E-levy, betting tax and others

Finance Minister Dr. Cassiel Ato Forson presented eight bills to Parliament yesterday March 13 aiming at abolishing several taxes including the Electronic Transaction Levy (E-Levy), the betting tax, and other levies.
These bills are part of the government’s efforts to ease the financial burden on Ghanaians and stimulate economic growth. What are these taxes and their relevance?

The E-Levy; a 1% tax on digital transactions that is commonly known as Momo was introduced in 2022 to capitalize on the growth of the digital economy. It has faced strong opposition from mobile money users and businesses due to the increase in the cost of financial transactions that comes with it.

The 10% withholding tax on lottery winnings, also known as the betting tax has been a worry for a lot of Ghanaian youths who see it as a hindrance to their gainings in the midst of unemployment.
The emissions levy; also known as the ‘ehusie’ tax, was part of an environmental initiative to reduce pollution from industries and vehicles. To the government; abolishing this tax will reduce the financial burden on businesses and households.

The Value Added Tax (VAT) on motor vehicle insurance policies will be abolished to make insurance more affordable for vehicle owners.
The 1.5% withholding tax on unprocessed gold by small-scale miners will be removed to support the mining sector.

Dr. Forson emphasized that the removal of these taxes is intended to ease the financial pressures faced by Ghanaians and improve their disposable incomes. The finance minister stated, “Mr. Speaker, the removal of these taxes will ease the burden on households and improve their disposable incomes”.

 To address the revenue shortfall from the removal of these taxes, the government plans to reduce the ceiling on the tax refund from 6% to 4% to save about GH¢3.8 billion. According to the minister, this amount is sufficient to cover the revenue shortfall from the removal of the E-Levy (GH¢1.9 billion) and the betting tax (GH¢180 million).

The bills will be presented under a certificate of urgency allowing for expedited consideration and passage. Dr. Forson expressed confidence that the process would be smooth due to the simplicity of the repeals with each tax requiring only a single clause in the legislative process.
The National Democratic Congress (NDC) has pledged to use its majority status in Parliament to lift the tax burden on Ghanaians.

The Finance Minister’s statement was also well-received by football fans and bettors who also call themselves investors, long argued that the betting tax significantly reduced their winnings.
The swift passage of these bills under a certificate of urgency is expected to bring immediate financial relief to households and businesses across Ghana.