President John Dramani Mahama has today made good on a key promise made during his campaign by signing into law three amended bills that abolish the Betting Tax, the Electronic Levy (E-Levy), and the Emissions Tax.
The bills were passed by Parliament earlier this week and were signed into law by President Mahama at a ceremony held at the Jubilee House.
These tax cuts come as a major relief to businesses, mobile money users, and the gaming industry, all of which have long opposed these taxes due to their adverse economic impact.
Abolition of the E-Levy
The controversial Electronic Levy, introduced in 2022, had imposed taxes on electronic transactions, particularly mobile money transfers, leading to widespread dissatisfaction.
Many citizens, especially small business owners, viewed the levy as a barrier to financial inclusion and digital growth.
The repeal of the E-Levy is expected to reignite the growth of mobile money services, making digital financial services more accessible and encouraging the continued expansion of the cashless economy.
Removal of the Betting Tax
The Betting Tax, which taxed winnings from sports betting and online gambling, was another point of contention, particularly among youth and the gambling industry.
Critics argued that the tax stifled growth in the sector and discouraged participation. By abolishing this tax, the government aims to nurture the burgeoning gaming industry, offering more opportunities for growth and job creation within this sector.
Scrapping the Emissions Tax
Introduced as an environmental levy on vehicles and industries with high carbon emissions, the Emissions Tax sparked backlash from transport unions and businesses.
The tax was criticized for raising operating costs and lacking clear incentives for compliance. With its removal, businesses and vehicle owners will feel some relief, while the government aims to find more balanced and effective ways to address environmental concerns.
A Pledge Fulfilled
In his address during the signing ceremony, President Mahama emphasized his administration’s commitment to economic growth and easing the burden on the everyday Ghanaian.
“We campaigned on a promise to ease the financial pressure on Ghanaians, and today, we have taken concrete steps to deliver on that promise. We will continue to work towards building a prosperous Ghana where the people’s well-being is a top priority,” Mahama said.
The new laws are effective immediately, with the Ghana Revenue Authority (GRA) expected to issue further guidelines on their implementation.
