The Association of Ghana Industries (AGI) and the Ghana Chamber of Telecommunications have lauded the government’s decision to abolish the 1% Electronic Transfer Levy (E-Levy), citing its potential to bolster digital financial transactions and reduce the cost of doing business in Ghana.
According to Seth Twum Akwaboah, CEO of AGI, the removal of the levy will have a profound impact on businesses, particularly small and medium enterprises (SMEs), which account for 75% of AGI’s membership.
“Digital transactions are essential for our members, and any additional cost discourages their use. The removal of the levy will not only cut costs but also encourage more businesses to embrace digital financial services and electronic money transfers.”
Akwaboah commended the government for fulfilling its commitment, saying,
“It’s a commitment the President made, and now that it has been fulfilled, we look forward to seeing its impact on business growth.”
Ing. Dr. Kenneth Ashigbey, CEO of the Ghana Chamber of Telecommunications, echoed Akwaboah’s sentiments, highlighting the broader economic benefits of eliminating the E-Levy.
“With this removal, we expect an increase in both the volume and value of digital transactions. This growth will boost profitability for financial institutions, leading to higher corporate tax revenues for the government.”
Ashigbey noted that the removal of the E-Levy will also reduce the cost of printing physical currency, benefiting the Bank of Ghana, and generate valuable data for policymakers to enhance fiscal and monetary strategies.
Moreover, it aligns with the government’s financial inclusion strategy, fostering a more digitized economy while easing financial burdens on businesses and consumers alike.
President John Dramani Mahama’s assent to the legislative bills abolishing the E-Levy, Betting Tax, and Emissions Tax demonstrates the government’s commitment to alleviating the financial burden on Ghanaians.
