Ghana’s government removes controversial taxes amid economic pressures and public outcry
Accra, Ghana, President John Dramani Mahama has signed into law the repeal of several contentious taxes, including the 10% betting tax, the Electronic Transaction Levy (E-Levy), and other levies that had drawn widespread criticism from businesses and consumers. The move signals a significant shift in fiscal policy as the government seeks to ease financial burdens on citizens and stimulate economic activity.
Background: Why These Taxes Were Controversial
The betting tax, introduced in 2023, imposed a 10% withholding tax on all sports betting and lottery game winnings. Critics argued that it discouraged formal betting participation, pushing gamblers toward unregulated markets. Meanwhile, the E-Levy, a 1.5% charge on electronic transactions, faced backlash for increasing the cost of mobile money and digital payments—a critical financial tool for Ghana’s unbanked population.
Tax Reforms in Ghana: A Turning Point for Economic Growth Amidst Financial Challenges
Business leaders and economists had long warned that these taxes stifled economic growth, particularly in the fintech and gaming sectors. According to Bank of Ghana data, mobile money transactions, a lifeline for small traders, saw a 20% decline in volume after the E-Levy’s introduction.
President Mahama’s tax cuts mark a pivotal moment in Ghana’s economic strategy, prioritizing growth over austerity. However, with Ghana’s debt-to-GDP ratio still above 80%, the long-term success of these reforms will depend on smarter taxation and spending efficiency.
