President-elect John Mahama’s plan to abolish the E-Levy risks over GH₵ 1 billion revenue loss, challenging Ghana’s growing tax-to-GDP ratio.
President-elect, John Mahama’s decision to abolish the Electronic Transfer Levy (E-Levy), has sparked heated debates, with proponents of its removal arguing that it will encourage digital financial transactions and reduce the financial burden on Ghanaians.
On the other hand, opponents warn that the loss of over GH₵ 1 billion in annual revenue could reverse the recent
gains in the tax-to-gross domestic product (GDP) ratio and strain government finances.
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Tax revenue trends between 2018 and 2023 show steady growth, with total revenue increasing from GH₵ 37.68
billion in 2018 to a record GH₵ 113.07 billion in 2023.
This consistent improvement underscores the government’s reliance on domestic revenue to fund critical programs
and address budget deficits.
The biggest opposition in the country at the time of the introduction of the E-Levy, the National Democratic Congress (NDC), criticized the move noting the burden it would bring to Ghanaians.
However, as John Dramani Mahama’s administration prepares to take office now, the challenge will be to find alternative revenue streams to offset the expected shortfall if they go ahead to remove it.
Introduced in 2022, E-Levy has been a significant contributor to Ghana’s tax revenue, consistently exceeding its targets.
In its first year, the levy generated GH₵ 643.35 million, surpassing its revised target of GH₵ 611 million by 5.3%.
This upward trajectory continued in 2023, with GH₵ 1,194.50 million collected, exceeding the target of GH₵ 1,111.28 million by 7.5%. However, president-elect John Mahama’s pledge to abolish the levy raises concerns about how the country will compensate for the potential revenue shortfall of over GH₵ 1 billion annually.
An analysis of Ghana’s Tax-to-GDP Ratio from 2018 to 2023 highlights the critical role of tax revenue in the nation’s economy. The data reveals a steady increase in the ratio, rising from 12.9% in 2018 to 14.1% in 2023. This growth is partly attributed to improved tax collection mechanisms, including the introduction of the E-Levy.
The Ghana Revenue Authority (GRA) has emphasized that the E-Levy expanded the tax base by including digital
financial transactions, which previously went untaxed. However, critics argue that the levy discouraged mobile money usage, leading to a decline in digital transactions and slowing financial inclusion.
A report by GSMA noted that the levy caused some individuals to revert to cash transactions to avoid the tax,
undermining efforts to modernize Ghana’s financial systems.
Last Updated on March 9, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
