2025 budget: Government to scrap e-levy, betting and other nuisance taxes

The Finance Minister, Dr. Cassiel Ato Forson, has announced a bold move by the government to abolish the Electronic Transaction Levy (E-Levy) and the 10% tax on lottery winnings, commonly referred to as the betting tax.

This major policy shift was unveiled during the presentation of the 2025 Budget Statement and Economic Policy to Parliament on March 11, 2025.

According to Dr. Ato Forson, the move underscores the government’s commitment to easing the tax burden on citizens and creating a fairer, more inclusive financial system.

It also delivers on a key campaign promise made by the NDC government to remove not just the E-Levy and betting tax but also the widely unpopular COVID-19 Health Levy.

The Finance Minister explained that this decision forms part of a broader economic strategy aimed at stimulating growth, restoring consumer confidence, and encouraging broader participation in the formal financial sector.

“First, we will abolish the 10% withholding tax on lottery winnings, commonly referred to as the ‘Betting Tax’. Second, we will scrap the 1% Electronic Transfer Levy (E-Levy) to promote digital transactions and enhance financial inclusion. Third, we will eliminate the Emission Levy on industries and vehicles to support productive sectors and reduce costs for businesses and individuals alike,” he announced.

“Fourth, we will remove the VAT on motor vehicle insurance premiums, making insurance more affordable for vehicle owners,” he added.

“And finally, we will abolish the 1.5% withholding tax on the sale of unprocessed gold by small-scale miners to support the livelihoods of our miners and boost formalisation in the sector.”

However, the announcement has sparked debate among some stakeholders, who have raised concerns about the potential revenue losses associated with the removal of these taxes.

Economist Professor Godfred Bokpin has projected that the combined revenue loss could exceed GH₵7 billion.

Nonetheless, he pointed out that the government could recover this shortfall by improving efficiency in existing tax structures, particularly corporate income tax and Value Added Tax (VAT), which he described as currently underperforming due to administrative and compliance challenges.

By scrapping these taxes, the government seeks to eliminate barriers that have discouraged digital transactions and disproportionately impacted young people and those working in the informal sector.

Dr. Ato Forson emphasised that this bold step is essential in building a more resilient, inclusive, and people-centred economy—one that champions equity, opportunity, and long-term prosperity for all Ghanaians.