Ghana to Scrap E-Levy and Betting Tax in 2025 Budget Reform
Finance Minister Dr. Cassiel Ato Forson has announced the government’s decision to abolish the Electronic Transactions Levy (E-Levy) and the 10% tax on betting as part of efforts to alleviate economic hardship and stimulate recovery. Presenting the 2025 Budget Statement and Economic Policy to Parliament on March 11, 2025, he emphasized that these taxes, introduced by the previous administration, failed to generate the projected revenue and contributed to the rising cost of living. The tax cuts aim to restore economic confidence and provide much-needed relief to Ghanaians.
“Mr. Speaker, we will abolish the 10% withholding tax on winnings from lottery, otherwise known as the ‘Betting Tax’; we will abolish the Electronic Transfer Levy (E-Levy) of 1%; we will abolish the Emission Levy on industries and vehicles; we will abolish the VAT on motor vehicle insurance policy; and we will abolish the 1.5% withholding tax on winning of unprocessed gold by small-scale miners,” Dr. Forson declared.
The E-Levy, introduced in 2022, faced widespread criticism for disproportionately burdening low-income earners and small businesses, while the betting tax was highly unpopular among the youth due to limited employment opportunities. These levies, many argued, stifled financial inclusion and discouraged digital transactions. By eliminating them, the government seeks to ease financial strain and encourage economic activity.
Dr. Forson reassured Ghanaians that the administration remains committed to boosting revenue collection efficiency rather than imposing new taxes. This approach, he noted, would secure adequate funding for national development projects without overburdening taxpayers, marking a significant shift in Ghana’s fiscal policy.