In a landmark move aimed at reducing the financial burden on Ghanaians, President John Dramani Mahama has officially assented to several legislative bills, including the repeal of the Betting Tax, Electronic Transfer Levy (E-Levy), and Emissions Tax.
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This decision aligns with the National Democratic Congress’s (NDC) commitment to fostering a more business-friendly economic environment and alleviating hardships imposed by these levies.
The approval of these tax repeals marks a significant shift in Ghana’s fiscal policy, particularly impacting the betting industry, mobile money users, and businesses subject to emissions regulations. The move has been widely welcomed by industry stakeholders, financial experts, and ordinary citizens who viewed these taxes as excessive and burdensome.
Legislative Approval and Key Tax Repeals
On March 13, 2025, Finance Minister Dr. Cassiel Ato Forson presented a set of eight bills to Parliament, seeking to repeal or amend various taxes and levies. Among the key bills signed into law by President Mahama were:
Electronic Transfer Levy (Repeal) Bill, 2025
Emissions Levy (Repeal) Bill, 2025
Income Tax (Amendment) Bill, 2025
Earmarked Funds Capping and Realignment (Amendment) Bill, 2025
Understanding the Betting Tax Repeal
One of the most debated tax policies in recent years was the Betting Tax, which imposed a 10% charge on gross winnings from gambling activities, including sports betting, lottery, and online gaming. The policy, introduced to generate revenue from the rapidly growing gaming industry, was met with backlash from industry players and bettors alike.
Critics argued that the Betting Tax discouraged participation in legal betting platforms, drove gamblers toward underground or offshore betting markets, and disproportionately affected youth, many of whom rely on betting as a source of income. The repeal of the Betting Tax is expected to revitalize Ghana’s gaming sector, attract more international betting operators, and increase revenues through licensing fees rather than punitive taxation.
The E-Levy, first introduced in 2022, imposed a 1% charge on electronic transactions, including mobile money transfers, online payments, and digital banking transactions. The tax was initially designed to boost government revenue by capitalizing on the growing digital economy. However, its implementation sparked widespread opposition from businesses, financial analysts, and everyday citizens, many of whom saw it as a direct attack on digital financial inclusion.
Since its introduction, the E-Levy has been blamed for reducing mobile money transactions, discouraging cashless payments, and undermining financial accessibility for lower-income individuals. With its repeal, Ghana’s digital economy is expected to witness renewed growth, increased transaction volumes, and greater financial inclusion for underserved communities.
Impact of Repealing the Emissions Tax
The Emissions Tax was designed to curb pollution and encourage environmentally responsible business practices by taxing companies with significant carbon footprints. However, many manufacturers and businesses saw it as an additional financial burden, arguing that it stifled industrial growth and made production costs unsustainable. With its repeal, businesses, especially those in manufacturing, transportation, and energy sectors, are expected to experience reduced operational costs, leading to potential job creation and increased investment in industrial expansion.
The announcement of these tax repeals has generated mixed reactions from various quarters. While many citizens and business owners have welcomed the move, some economic analysts caution against potential revenue shortfalls for the government. Public Reactions:
Business Owners & Entrepreneurs: Many small business owners, particularly those in the digital economy, have applauded the removal of the E-Levy, as it eliminates a significant barrier to mobile transactions.
Betting Industry Stakeholders: Online gaming platforms, betting companies, and professional bettors have celebrated the repeal of the Betting Tax, predicting an increase in betting activity and higher revenues.
Environmental Activists: Some climate advocates have expressed concerns over the removal of the Emissions Tax, arguing that it could slow Ghana’s progress toward reducing carbon emissions and fighting climate change.
Government’s Justification
During the bill presentation, Finance Minister Dr. Cassiel Ato Forson reassured Ghanaians that the tax repeals would not negatively impact revenue generation. Instead, he emphasized that the government would focus on alternative revenue streams, such as:
Expanding the tax base by formalizing more sectors of the economy
Increasing corporate tax compliance
Attracting foreign direct investment (FDI) through a more business-friendly tax regime
Mahama’s Fulfilled Campaign Promise
Before the 2024 general elections, John Dramani Mahama, then flagbearer of the NDC, made a bold promise to abolish certain “nuisance taxes” within his first 120 days in office if elected. By signing these tax repeal bills into law, he has effectively delivered on that promise, reinforcing his commitment to economic relief for Ghanaians. His administration has positioned these tax repeals as part of a larger economic transformation agenda, aiming to boost consumer confidence, drive local investments, and foster economic growth.
The repeal of the Betting Tax, E-Levy, and Emissions Tax marks a major shift in Ghana’s tax policy, reflecting a pro-business and consumer-friendly approach. While the decision has been met with both praise and criticism, its long-term effects will be closely monitored to assess its impact on government revenue, economic growth, and social welfare.
As Ghana navigates these changes, one thing is clear: the repeal of these taxes represents a significant milestone in shaping a more inclusive and digitally driven economy. Whether this will lead to sustained economic benefits or unintended fiscal challenges remains to be seen.
By GhanaNewsPage 
