Finance Minister-designate Dr. Cassiel Ato Forson has reaffirmed his and the new government’s commitment to abolish the controversial Electronic Transactions Levy (E-Levy) within 120 days of taking office, should he be confirmed.
Speaking during his vetting before the Appointments Committee on Monday, January 13, 2025, Dr. Forson criticized the tax as a fundamentally flawed policy and outlined strategies to address the revenue impact of scrapping it.
He argued that the E-Levy does not qualify as either a direct or indirect tax under standard tax frameworks.
“I’ve written articles against the E-Levy. I championed opposition to it, and I still stand by my position. The E-Levy has driven Ghana towards a cashless economy and hindered the growth of FinTech. We need to abolish it,” he said.
E-levy
Dr. Forson confirmed that the plan to abolish the levy is in line with the National Democratic Congress (NDC) manifesto and President John Mahama’s 120-day action plan.
“As part of our first budget, I will announce the abolition of the E-Levy. This will be done within the first 120 days, as promised by His Excellency President Mahama,” he assured.
Responding to concerns about the potential revenue shortfall from abolishing the levy, Dr. Forson emphasized the importance of prudent expenditure management as an alternative to revenue replacement.
“It shouldn’t always be about revenue. You either remove the MoMo tax and replace it, or remove it and cut corresponding expenditure,” he noted.
He remained resolute in his commitment, stating, “My commitment remains—the E-Levy will go, and it will go immediately.”
The nominee added that an NDC-led government would assess the fiscal impact of the policy’s removal, review expenditure lines holistically, and focus on eliminating wasteful spending while safeguarding essential social programs.
Alhassan Abass/thenewsbulletin.com
