President-elect, John Dramani Mahama has clarified that his administration will not be able to scrap the Electronic Levy (E-Levy), betting taxes, and other nuisance levies immediately after assuming office, despite his earlier campaign promises.
Mr. Mahama explained that these taxes are tied to the International Monetary Fund’s (IMF) conditionalities under Ghana’s current economic bailout program.
He noted that while his government remains committed to alleviating the financial burden on Ghanaians, fulfilling this promise will require neutralizing these taxes within the framework of the IMF agreement.
“The E-Levy and other nuisance taxes are tied to the IMF program and cannot be removed instantly. We will need to navigate this issue strategically to ensure economic stability while delivering on our commitments,” he stated.
The E-Levy, introduced in 2022 as a 1.5% tax on electronic transactions, has been a controversial policy, drawing criticism for disproportionately affecting low-income earners and small businesses.
During the campaign, Mr. Mahama and the opposition National Democratic Congress (NDC) pledged to scrap the levy within their first 90 days in office.
However, Mr. Mahama’s recent comments have sparked disappointment among Ghanaians who had hoped for swift relief from these taxes.
Critics have argued that the E-Levy, which predates the IMF agreement, was introduced by the previous government as a domestic revenue measure and is not directly tied to the IMF's demands.
The incoming administration faces the delicate task of balancing the expectations of citizens with the realities of Ghana’s economic obligations under the IMF program.
Story by: Joshua Kwabena Smith
Comments