Mahama Fulfills Campaign Promise: E-Levy, Betting Tax, and Emissions Tax Officially Abolished
A Landmark Moment in Ghana’s Economic Policy
President John Dramani Mahama has officially signed into law a landmark set of bills that abolish several controversial taxes, including the Electronic Transfer Levy (commonly known as the E-Levy), the betting tax, and the emissions tax. This decisive move represents the fulfillment of one of the most critical promises in the National Democratic Congress (NDC)’s 2024 manifesto and has stirred a significant wave of public reaction across Ghana.
The bills, passed by Parliament on March 26, 2025, were promptly signed into law by the president in his office just days later. These laws are intended to offer much-needed relief to Ghanaians burdened by years of tax policies that critics have labeled as regressive and anti-poor.
The Origins of the E-Levy and Public Backlash
The Electronic Transfer Levy was introduced in 2022 under the New Patriotic Party (NPP) administration. It was designed as a revenue mobilization tool, taxing electronic financial transactions such as mobile money transfers, bank-to-bank transfers, and online payments. While the policy was projected to generate billions in revenue for the state, its implementation was marred by public outcry and massive resistance.
Many Ghanaians viewed the tax as a burden on the very financial services that had been instrumental in promoting financial inclusion. The mobile money ecosystem, which serves millions of Ghanaians—especially the unbanked and those in rural areas—saw a significant decline in usage following the introduction of the E-Levy. Critics argued that instead of widening the tax net, the E-Levy created barriers and discouraged the use of digital platforms.
Civil society groups, trade unions, and ordinary citizens staged protests and used social media platforms to call for its removal. From the onset, Mahama and the NDC strongly opposed the tax, branding it as unjust and promising to repeal it once in office. Now, less than a year into his presidency, Mahama has delivered on that promise.
The Betting Tax and Its Implications on Youth
In recent years, Ghana has seen an exponential rise in sports betting, particularly among the youth. Betting companies flourished across the country, becoming a dominant presence in urban centers and online spaces. The NPP government, citing the growth of the industry, introduced a 10% tax on gross winnings in 2023 as a way to capture revenue from the betting sector.
However, this tax was viewed by many as a move that unfairly targeted young Ghanaians, many of whom are unemployed or underemployed and see betting as a means of survival. While acknowledging the social issues linked with betting, opponents of the tax believed the focus should be on regulation rather than taxation.
With the signing of the new law, the betting tax is now history. The Mahama administration has said that a comprehensive regulatory framework will soon be introduced to address addiction and underage participation, but without placing an additional financial burden on users.
The Emissions Tax and the Struggle of Transport Operators
The emissions tax, introduced as part of an environmental sustainability drive, required vehicle owners to pay a levy based on the carbon emissions of their cars. While the intention was environmentally sound, the policy was poorly received. Transport unions, commercial drivers, and private vehicle owners protested what they called a discriminatory tax that failed to consider the age and maintenance realities of Ghana’s vehicle population.
Most of Ghana’s vehicles are imported second-hand, and drivers found it unfair that they were being taxed for emissions that could not be easily controlled given the nature of the vehicles they could afford. Drivers complained that their costs were rising, and passengers also felt the pinch through increased transport fares.
Mahama’s repeal of the emissions tax comes as a welcome relief to these stakeholders. The administration has indicated it will work toward a new environmental policy that includes incentives for using environmentally friendly vehicles rather than punitive measures.
Political Significance of the Repeals
The repeal of these taxes goes beyond economics—it marks a political milestone. Mahama’s actions serve as a demonstration of trustworthiness and accountability, at a time when public faith in political promises is low. Fulfilling a major manifesto pledge within months of assuming office sets a precedent and raises the bar for political accountability in Ghana.
Moreover, the NDC’s legislative majority played a crucial role in enabling the swift passage of the bills. Political analysts say this development will embolden the party to push further economic reforms, possibly including tax code revisions and broader fiscal policy restructuring.
Reactions from the Public
Public response to the repeal of these taxes has been overwhelmingly positive. In Accra, Kumasi, Tamale, and other major towns, citizens took to social media and radio shows to express their satisfaction. Traders, mobile money vendors, transport unions, and students hailed the decision as a bold step toward economic fairness.
Market women in Makola Market expressed relief that mobile money charges would return to pre-E-Levy levels. "Now we can send and receive money without fear," one trader remarked. A student in Cape Coast added, “The e-levy was killing us. Sometimes I had to walk long distances to avoid using mobile money.”
Betting shop operators also applauded the repeal of the betting tax, noting that customer activity had already begun to pick up. Transport unions described the removal of the emissions tax as a necessary intervention to curb the escalating cost of transportation.
Economic Impact and Concerns
While many applaud the repeals, some economists have raised concerns about the potential revenue shortfall. The E-Levy alone was expected to generate billions annually, and its removal means the government must find alternative sources of revenue.
The Ministry of Finance, however, has reassured the public that new fiscal strategies are being developed to ensure that critical sectors such as education, health, and infrastructure are not underfunded. Officials say the focus will shift toward expanding the tax base, improving compliance, and cutting wasteful expenditures.
Additionally, the Mahama administration is exploring public-private partnerships, investment inflows, and targeted industry growth strategies as more sustainable alternatives to direct taxation on consumers.
Mahama’s Broader Economic Vision
The repeal of the E-Levy and other taxes is just one component of Mahama’s broader economic recovery strategy. His administration has emphasized job creation, infrastructure development, and industrial transformation. Already, work is underway to revive abandoned factories, expand the agricultural sector, and roll out new social protection programs.
Mahama has also pledged to review Ghana’s debt obligations and engage international creditors in dialogue aimed at achieving debt sustainability. Fiscal discipline, coupled with targeted investment in productive sectors, is expected to form the backbone of the country’s growth strategy over the next four years.
The Role of Parliament and Civil Society
Parliament’s passage of the tax repeal bills was not without debate. While the NDC majority ensured smooth passage, some minority lawmakers questioned the financial prudence of removing revenue streams without immediate substitutes. Civil society organizations such as the Ghana Centre for Democratic Development (CDD-Ghana) and IMANI Ghana, while largely supportive, have called for increased transparency in fiscal planning.
Nonetheless, the consensus among most stakeholders is that the repeals were necessary and timely. Moving forward, civil society has a role to play in monitoring how the government compensates for the loss in revenue and whether the financial relief reaches the intended beneficiaries.
Regional Implications and International Attention
Ghana’s decision to abolish these taxes has attracted international attention, particularly from other African nations grappling with similar policy challenges. Countries such as Nigeria, Kenya, and Uganda have introduced or considered taxes on digital transactions and betting, sparking debate about their socio-economic consequences.
Mahama’s bold move could inspire policy reevaluation in the region. It also positions Ghana as a leader in responsive governance—one that listens to its citizens and acts swiftly to correct course when policies prove unpopular or ineffective.
Youth Engagement and Political Renewal
The repeal of the betting tax, in particular, has rekindled interest among young Ghanaians in political participation. Many youth organizations that had previously taken a back seat during political conversations are now energized, using this milestone to demand more youth-friendly policies, especially in education, employment, and entrepreneurship.
Mahama’s administration appears keen on engaging with the youth, rolling out digital skill training initiatives, startup capital programs, and reforms aimed at reducing graduate unemployment. The repeal of punitive taxes is seen as a first step in building trust with the younger generation.
The Road Ahead
The repeal of the E-Levy, betting tax, and emissions tax marks the beginning of what could be a transformative era in Ghana’s political economy. It offers hope that governance can be people-centered, and that campaign promises can indeed translate into real policy changes.
For President Mahama, the challenge now lies in maintaining momentum and proving that alternative strategies can not only sustain the economy but also drive inclusive growth. The Ghanaian people, having tasted the benefits of this bold policy move, will be watching closely to ensure the administration delivers on its broader economic and social promises.
Conclusion
John Mahama’s decision to assent to the repeal of three of Ghana’s most controversial taxes is a significant political and economic statement. It highlights a shift from what many perceived as taxation without consideration for the everyday struggles of the citizenry. The road ahead will require careful planning, but the foundations of public trust and political accountability have been strengthened.
Ghanaians are hopeful that this is just the beginning of a governance model that prioritizes people over politics and that the gains from this tax relief will translate into improved living standards for all