Parliament has approved the removal of the Electronic Transaction Levy (E-Levy) as part of the 2025 budget statement. This move follows the passage of the Electronic Transaction Levy (Repeal) Bill, 2025, on Wednesday, March 26.
Finance Minister Dr. Cassiel Ato Forson had previously announced the government’s plan to abolish the E-Levy, along with the 10% tax on lottery winnings, also known as the betting tax.
The minister presented the government’s first budget statement to Parliament on Tuesday, March 11.
Additionally, the government will cancel other levies, including the Emissions tax. Dr. Forson also announced plans to review the Value Added Tax system, which will eventually lead to the abolition of the COVID-19 levy.
The government has reaffirmed its commitment to social protection programs, increasing budgetary allocations to initiatives such as the National Health Insurance Scheme (NHIS), the Livelihood Empowerment Against Poverty (LEAP) program, the School Feeding Program, and the Capitation Grant.
Under the LEAP program, benefits have been adjusted to reflect inflation, and the number of beneficiary households will increase from 350,000 to 400,000 in July 2025. The government has also raised the allocation for LEAP benefits by 30.8%, from GH¢728.8 million to GH¢953.5 million. Funding for the School Feeding Program has also been increased, with the cost of feeding per pupil per day rising by 33%.
Dr. Forson emphasized the need for national unity and collective effort in addressing Ghana’s economic challenges. He acknowledged the severe impact of recent economic difficulties, including currency depreciation, hyperinflation, high taxes, rising fuel and electricity prices, and soaring interest rates.
The minister highlighted President John Dramani Mahama’s commitment to fiscal discipline, including reducing the number of ministers from 123 to 60 and implementing budget cuts for the Office of the President. First-class travel for government officials has also been prohibited as part of cost-cutting measures.
Baina Multimedia
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