President John Dramani Mahama has officially signed into law a series of significant tax and fiscal reform bills aimed at providing financial relief to Ghanaians, enhancing economic growth, and improving public financial management.
Among the notable changes is the repeal of the controversial Electronic Transfer Levy (E-Levy), alongside amendments to key taxation and revenue management policies.
The move, in line with the National Democratic Congress (NDC)’s manifesto, is aimed at reducing the cost of living, encouraging business expansion, and creating a more balanced tax system. Parliament passed the repeal bills on Wednesday, March 26, 2025, paving the way for their enactment by President Mahama.
The following bills have now been officially signed into law:
- Electronic Transfer Levy (Repeal) Bill, 2025
- Betting Tax Repeal
- Emissions Levy (Repeal) Bill, 2025
- Earmarked Funds Capping and Realignment (Amendment) Bill, 2025
- Public Financial Management (Amendment) Bill, 2025
- Public Procurement (Amendment) Bill, 2025
- Value Added Tax (Amendment) Bill, 2025 (VAT on Insurance)
- Petroleum Revenue Management (Amendment) Bill, 2025
E-Levy Repeal to Boost Digital Transactions
One of the most anticipated reforms is the repeal of the E-Levy, which was introduced in 2022 to tax electronic transactions. The government argues that removing the levy will:
• Increase disposable income for individuals and businesses
• Encourage digital transactions and financial inclusion
• Reduce the cost of doing business and promote fintech innovation
• Support the transition to a cash-lite economy
Betting Tax and Emissions Levy Scrapped
The removal of the Betting Tax eliminates withholding taxes on winnings from lotteries, betting, and games of chance. This is expected to boost the gaming industry and increase disposable income for those involved in these activities.
Similarly, the Emissions Levy, which taxed carbon dioxide emissions from industries and vehicles, has been scrapped. The government plans to develop a more comprehensive environmental strategy that promotes green energy and eco-friendly technologies while addressing climate concerns.
VAT Exemption on Motor Vehicle Insurance
The Value Added Tax (Amendment) Bill, 2025 eliminates VAT on motor vehicle insurance, easing the financial burden on drivers and transport operators. This change is expected to:
• Prevent fare increases for commuters
• Lower insurance costs for vehicle owners
• Improve affordability for commercial transport operators
Public Financial Management and Petroleum Revenue Reforms
The Public Financial Management (Amendment) Bill, 2025 introduces new fiscal responsibility rules, including:
• A public debt-to-GDP cap of 45% by 2034
• Establishing an independent Fiscal Council to enforce budget discipline
• Strict penalties for officials responsible for fiscal mismanagement.
Additionally, the Petroleum Revenue Management (Amendment) Bill, 2025 mandates that all petroleum revenue allocated under the Annual Budget Funding Amount (ABFA) be used exclusively for infrastructure projects under the government’s Big Push development agenda.
Uncapping of Key Earmarked Funds
The Earmarked Funds Capping and Realignment (Amendment) Bill, 2025 restores full funding to critical national programs, including:
• Ghana Education Trust Fund (GETFund): To finance free secondary education and free tertiary education for Persons with Disabilities
• National Health Insurance Fund: To boost funding for claims payments, essential medicines, vaccines, and the Free Primary Healthcare initiative
• Road Fund: To increase investments in road maintenance and infrastructure improvements
With these reforms, President Mahama’s administration aims to reduce the tax burden on citizens, stimulate business growth, and improve public financial management. The government expects these measures to boost consumer spending, encourage investment, and drive economic expansion across multiple sectors.
