Ghana is projected to lose a combined GH¢18.15 billion in revenue by 2027 following the abolition of the Electronic Transfer Levy (E-Levy) and the COVID-19 Health Recovery Levy, a new study by the Centre for Policy Scrutiny (CPS) has revealed.
The findings were presented at a public lecture organised by CPS on Tuesday, April 7, 2026, and delivered by fiscal policy specialist, Mr. Isaac Danso Agyiri.
The study, which examines the fiscal and equity implications of removing the two major revenue measures alongside the betting tax, indicates that while the policy shift provides some relief to households and improves equity outcomes, it comes at a significant cost to government revenue mobilisation.
According to the analysis, the abolition of the E-Levy is expected to result in a cumulative revenue loss of about GH¢8.2 billion by 2027, while the COVID-19 levy could account for an additional GH¢9.95 billion in lost revenue over the same period. Together, these account for the projected GH¢18.15 billion shortfall.
Presenting the findings, Mr. Agyiri explained that the COVID-19 levy had been one of the more stable sources of revenue due to its broad-based structure within the consumption tax framework. He noted that the levy generated over GH¢1.72 billion in 2022 and increased steadily to about GH¢2.94 billion by 2024, despite not always meeting set targets.
The E-Levy, introduced in 2022 as part of efforts to expand the tax net through digital transactions, recorded a less consistent performance. It fell significantly short of its initial GH¢6.9 billion target in its first year but improved gradually, with collections exceeding GH¢1.8 billion in 2024 before its eventual abolition in April 2025.
Mr. Agyiri noted that beyond revenue considerations, the structure of the taxes raised important equity concerns. The study found that the E-Levy, in particular, placed a disproportionate burden on low- and middle-income earners who depend heavily on mobile money for daily transactions.
“The evidence suggests that while these taxes contributed to domestic revenue mobilisation, they also imposed uneven burdens across income groups. Their removal therefore improves equity and provides some relief to vulnerable households,” he said.
However, he cautioned that the fiscal implications of the policy decision are substantial and require careful management.
“The projected GH¢18.15 billion revenue loss is significant. Without well-designed compensatory measures, this could create additional pressure on public finances and affect government’s capacity to meet its expenditure commitments,” Mr. Agyiri added.
The study also assessed the broader economic effects of the abolished taxes. It found that although the E-Levy initially slowed the growth of mobile money transactions, the sector showed resilience and rebounded strongly over time. The removal of the levy is therefore expected to further enhance digital financial activity and inclusion.
Similarly, the abolition of the COVID-19 levy is expected to reduce the tax component embedded in prices, potentially lowering the cost of goods and services and stimulating consumer demand.
On the betting tax, the study observed that its contribution to revenue was relatively minimal, generating between GH¢78 million and GH¢80 million during its implementation, far below the projected GH¢1.2 billion annually.
In response to the anticipated revenue shortfall, the report highlighted ongoing government measures aimed at improving revenue mobilisation, including reforms in the Value Added Tax system, enhanced compliance efforts and adjustments to the tax refund regime. However, it noted that these measures may not fully offset the losses from the abolished levies.
Speaking at the event, the Executive Director of CPS, Dr. Adu Owusu Sarkodie, underscored the importance of grounding tax policy decisions in evidence and long-term sustainability.
“We believe that discussions on tax reforms must go beyond political considerations and focus on data, fairness and sustainability. While the removal of these taxes brings relief, the associated revenue implications cannot be overlooked,” he stated.
He added that platforms such as the CPS public lecture are essential for fostering informed debate on critical economic policy issues and promoting accountability in decision-making.
The lecture, which attracted policy analysts, academics, students and members of civil society, forms part of CPS’s broader effort to deepen public understanding of tax policy and its implications for national development.
