Mixed Reactions as Mahama Abolishes E-Levy, Betting Tax, and Emissions Levy

In the wake of President John Dramani Mahama’s signing of bills to abolish the Electronic Transfer Levy (E-Levy), Betting Tax, and Emissions Levy, Ghanaians from all walks of life are voicing their reactions, with many expressing a mixture of relief, gratitude, and hope for the future.

For years, the E-Levy, introduced in 2022, had been a thorn in the side of many Ghanaians. The 1% charge on mobile money transfers and online payments had faced widespread opposition, particularly from the informal sector and everyday citizens who found the levy burdensome. Now, with its repeal, many are hailing the decision as a victory for financial freedom.

Public Relief:
“I’m so happy this is finally over,” said Kwame Amoah, a small business owner in Kumasi. “The E-Levy made it harder for me to send money to my family, and it affected my business transactions. This is a big relief.”

Others in the mobile money sector also welcomed the move. “It was discouraging to see my customers paying extra fees just to send money to their families. I’ve already seen a positive change in business, with people returning to make transactions without worrying about added costs,” noted Ama, a mobile money agent in Kumasi.

Mixed Reactions from the Betting Industry:
While many Ghanaians are celebrating the end of the Betting Tax, stakeholders in the gambling industry are cautiously optimistic. The 10% tax on gambling winnings had drawn significant criticism, with many operators saying it was stifling the industry’s growth.

“I’m relieved to hear the tax is gone,” said George, a manager at a popular betting company. “It wasn’t just affecting our business, but also the players who were discouraged from gambling because of the tax. Now, I hope this will bring more customers and boost the industry.”

However, some critics argue that while the move may benefit some, the government’s tax reforms could potentially reduce revenue, particularly in sectors already struggling.

Environmental Concerns Over Emissions Levy Repeal:
The repeal of the Emissions Levy, which had targeted the reduction of environmental pollution, is generating mixed reactions. Environmental activists are expressing disappointment, arguing that scrapping the levy could undermine efforts to address climate change.

“We need to focus more on protecting the environment, and removing the Emissions Levy sends the wrong message,” said Kwabena Osei, an environmental advocate. “We’re already dealing with rising pollution levels, and this move will set back the progress we’ve made.”

Support from the NDC:
Supporters of the National Democratic Congress (NDC), Mahama’s political party, are celebrating the move as a key fulfillment of the party’s promise to reduce the tax burden on citizens. The party has long advocated for policies that prioritize the welfare of Ghanaians, and the recent legislative changes align with that vision.

“I knew Mahama would deliver on his promise,” said Adwoa, an NDC supporter. “This is the change we voted for. It’s going to make life easier for everyone, especially those struggling to make ends meet.”

The Way Forward:
While the immediate reactions have been positive, there are ongoing concerns about the potential impact on government revenue and the broader economy. Some economic analysts warn that the abolition of these taxes may lead to a short-term decrease in fiscal income, which could impact public services and infrastructure development.

“This move will certainly give Ghanaians a break, but we need to carefully monitor how it will affect the overall economy,” said Dr. Kofi Asamoah, an economist at the University of Ghana. “The government will need to find alternative revenue sources to sustain its budget and development projects.”

As the nation adjusts to these tax changes, all eyes will be on how Mahama’s administration navigates the challenges of ensuring economic stability while fulfilling its promises to the people. The coming months will reveal whether the abolition of these taxes will lead to sustainable growth or if new solutions will need to be implemented.

For now, many Ghanaians are simply relieved to see a lighter tax burden and are hopeful for a future with fewer financial obstacles.