Ghana could lose an estimated GH¢18.15 billion in revenue by 2027 following the removal of the Electronic Transfer Levy (E-Levy) and the COVID-19 Health Recovery Levy, a new study has revealed.
The report by the Centre for Policy Scrutiny (CPS) highlights the financial impact of abolishing the two major taxes, alongside the betting tax, noting that while the decision eases pressure on households, it significantly weakens government revenue generation.
The findings were presented at a public lecture on April 7, 2026, by fiscal policy analyst Isaac Danso Agyiri.
Revenue losses mount
According to the study, the elimination of the E-Levy alone is expected to cost the state about GH¢8.2 billion by 2027. The removal of the COVID-19 levy is projected to result in an additional GH¢9.95 billion loss over the same period.
Combined, these measures account for the anticipated GH¢18.15 billion shortfall in government revenue.
The report notes that the COVID-19 levy had been a relatively stable income source due to its broad application across goods and services. It generated approximately GH¢1.72 billion in 2022 and rose to about GH¢2.94 billion by 2024, despite falling short of official targets.
In contrast, the E-Levy recorded inconsistent performance. Introduced in 2022 to widen the tax net through digital transactions, it missed its initial GH¢6.9 billion target but gradually improved, with collections surpassing GH¢1.8 billion in 2024 before it was scrapped in April 2025.
Relief for citizens, but at a cost
Beyond revenue concerns, the study emphasised fairness issues linked to the taxes. It found that the E-Levy disproportionately affected low- and middle-income earners who rely heavily on mobile money for everyday transactions.
Mr Agyiri explained that although the taxes boosted domestic revenue, they placed unequal burdens on different income groups.
Their removal, he said, is likely to improve fairness and provide some relief, particularly for vulnerable households.
Economic impact and risks
Despite these benefits, the report warns that the fiscal consequences are significant and must be carefully managed.
Without effective alternative measures, the revenue gap could place additional strain on public finances and limit the government’s ability to fund key programmes and meet expenditure obligations.
The study also points to broader economic effects. It indicates that while the E-Levy initially slowed mobile money usage, the sector later recovered strongly. Its removal is therefore expected to further boost digital transactions and financial inclusion.
Similarly, scrapping the COVID-19 levy could reduce the tax component in prices, potentially lowering the cost of goods and services and encouraging consumer spending.
Betting tax impact minimal
On the betting tax, the report found its contribution to revenue was relatively small, generating between GH¢78 million and GH¢80 million—far below the projected GH¢1.2 billion annually.
Call for balanced policy decisions
The CPS is urging policymakers to balance tax relief with sustainable revenue strategies to avoid long-term fiscal challenges.
It stresses the need for well-structured alternatives to cushion the impact of lost revenue while maintaining economic stability.
Source: Wesleyannews.com
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