Betting/E-Levy repeal: Govt should have benefited from these taxes – Economist

Chief Economist with Policy Initiative and Economic Development, Dr. Daniel Amarteye Anim-Prempeh, has raised concerns over the financial implications of Ghana’s decision to repeal the Electronic Transfer Levy (E-Levy).

Speaking on Prime News on ABC News GH on Wednesday, he argued that the government should have benefited from these income taxes rather than abolishing them entirely. “Until they understand better the revenues of…,” he stated, emphasizing the need for a clearer strategy on revenue generation.

His comments come in response to Parliament’s approval of the Electronic Transfer Levy Repeal Bill 2025, which officially eliminates the controversial tax on electronic transactions. The E-Levy, introduced in 2022 at an initial rate of 1.75% before being reduced to 1%, was heavily criticized for discouraging digital payments and placing an additional financial burden on citizens.

Deputy Finance Minister Thomas Nyarko Ampem defended the repeal, stating that it would return GH¢2 billion to Ghanaians, easing financial pressures and boosting economic participation.

In addition to the E-Levy, Parliament has also passed bills to repeal the betting and emission taxes, all of which now await presidential assent.

The decision has received mixed reactions from political and economic analysts. The opposition New Patriotic Party (NPP) acknowledged the repeal as a positive step, with the party’s Director of Communications, Richard Ahiagbah, praising the removal of the E-Levy and betting tax as beneficial for citizens.

However, Dr. Anim-Prempeh insists that alternative revenue measures must be explored, warning that without a concrete plan to replace the lost revenue, Ghana could face significant fiscal challenges.