In a major legislative move, the Parliament of Ghana has passed bills for the repeal of the Electronic Transfer Levy (E-Levy), the Emission Levy, and the Betting Tax on gaming and lotteries.
This decision follows the third reading of the respective bills, which were presented by the Chairman of the Finance Committee of Parliament, Hon. Isaac Adongo.
The motions were moved by the Minister of Finance, Dr. Cassiel Ato Forson, who expressed optimism that President John Dramani Mahama would assent to the bills as soon as possible.
Dr. Forson emphasized that the repeals align with the government’s commitment to reducing the tax burden on Ghanaians and stimulating economic growth.
The repeal of these taxes has sparked discussions across the political spectrum, with both the Majority and Minority in Parliament weighing in on the significance of these changes.
The Majority Leader and Member of Parliament (MP) for Bawku Central, Hon. Mahama Ayariga, asserted that the abolition of the E-Levy and other taxes would increase the disposable income of ordinary Ghanaians, thereby enhancing their economic well-being.
“This is a significant step towards alleviating the financial burden on citizens. The removal of these taxes will ensure that Ghanaians have more money in their pockets, thereby boosting economic activity”.
Hon. Mahama Ayariga, Majority Leader and MP for Bawku Central
On the other hand, the Minority Leader and MP for Effutu played down the impact of the tax repeals.
He argued that while the move was commendable, it was insufficient to address the broader economic challenges confronting Ghanaians.
The Minority Leader urged the National Democratic Congress (NDC) administration to introduce more comprehensive economic policies that would drive sustainable growth and create jobs.
Breakdown of the Repealed Taxes
The repealed taxes have been a source of controversy since their introduction under the previous administration.
The E-Levy, which imposed a tax on electronic financial transactions, was widely criticized for placing an additional burden on citizens already struggling with economic difficulties.
Its removal has been welcomed by business owners, mobile money operators, and the general public, who see it as a relief from excessive taxation.
Similarly, the repeal of the Emission Levy—initially introduced as an environmental tax—has been lauded by industry players since the announcement by the Finance Minister Dr Ato Forson, particularly within the transportation and manufacturing sectors.
Many had argued that the levy was a disguised form of taxation that increased operational costs without necessarily achieving its intended environmental objectives.
The Betting Tax, which targeted gaming and lottery activities, had also been a point of contention, particularly among young people engaged in sports betting.
With its repeal, gaming companies and players anticipate a more favorable regulatory environment that does not discourage participation in the sector.
Revenue Administration Amendment Bill Passed
In another significant legislative development, Parliament also passed the Revenue Administration Amendment Bill, which seeks to reduce the percentage of total revenue allocated to the tax refund account from 6% to 4%.
This amendment aims to optimize government revenue allocation while ensuring that tax refunds remain adequately funded.
The passage of this bill reflects the government’s broader fiscal policy strategy to balance revenue mobilization with economic incentives that encourage compliance and investment.
As per constitutional requirements, the bills shall be forwarded to President John Dramani Mahama for his assent.
Once signed into law, the repeals will take immediate effect, providing relief to individuals and businesses alike.
The repeal of the E-Levy, Emission Levy, and Betting Tax marks a significant shift in Ghana’s tax policy under the current administration.
The move is part of the NDC administration’s broader strategy to fulfill campaign promises of reducing the tax burden on citizens.
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