In April 2025, Parliament passed two landmark laws that directly affect the financial lives of Ghanaians: the Electronic Transfer Levy (Repeal) Act, 2025 (Act 1128) and the Income Tax (Amendment) Act, 2025 (Act 1129). Together, they signal a significant shift in Ghana’s approach to taxation, balancing public relief with the government’s ongoing need to raise revenue.
What Changed?
- E-Levy Repeal
The much-debated Electronic Transfer Levy (E-Levy), introduced in 2022, imposed a tax on mobile money and electronic transactions. Its repeal means that from 2 April 2025, Ghanaians can once again send money through MoMo and banks without paying an additional levy. - Income Tax Amendment
The amendment removes withholding tax on lottery winnings and unprocessed gold transactions. This provides relief for individuals engaged in these activities, ensuring they receive their full winnings or gold proceeds without upfront deductions.
Impact on the General Public
- Everyday Citizens: The repeal of the E-Levy makes financial transactions more affordable, encouraging people to return to electronic payments instead of cash. This improves security and convenience, especially for rural communities where mobile money is the lifeline.
- Small Businesses & Traders: MoMo payments are central to many small and medium-sized enterprises (SMEs). With the levy gone, businesses can expect smoother customer transactions, potentially boosting sales.
- Lottery Players: Winnings are now tax-free at source. However, larger gains may still be subject to regular income tax, so winners should plan wisely.
- Gold Sector Participants: Small-scale miners and traders selling unprocessed gold benefit from this exemption, though they remain subject to other regulatory obligations under mining laws.
- Government Revenue: While citizens enjoy relief, Ghana loses a significant revenue stream. The government may respond by tightening tax compliance or introducing alternative levies in future budgets.
VON Law’s View
The repeal of the E-Levy is a victory for fairness and inclusivity in Ghana’s tax system. For years, it disproportionately affected the poor, who rely on mobile money. Its removal restores confidence in electronic payments and reduces the burden on ordinary citizens.
The Income Tax amendments provide welcome relief but also highlight a broader truth: tax laws are constantly evolving, and what you don’t know can cost you.
Advice to the Public
- Stay Informed: Always verify which taxes apply to your transactions. Do not assume exemptions mean tax-free living.
- Keep Records: Businesses and individuals should maintain receipts, bank statements, and MoMo records for accountability.
- Seek Guidance: If you win a lottery, trade in gold, or run a business, consult a tax expert to ensure you comply with remaining obligations.
- Plan Ahead: With the government losing revenue from the E-Levy, other taxes may rise in the future. Households should budget with this possibility in mind.
How VON Law Can Help
At VON Law, our tax and corporate advisory practice is ready to support:
- Individuals: Helping you understand your tax obligations after the repeal and avoid penalties from unexpected liabilities.
- Businesses: Advising SMEs and larger corporations on structuring transactions, record-keeping, and tax compliance.
- Lottery Winners & Miners: Ensuring that your winnings or gold sales remain compliant while maximising your returns.
- Policy Engagement: Offering thought leadership and advocacy on how future tax reforms can balance government revenue with fairness for citizens.
At VON Law, we believe that a well-informed citizen is an empowered citizen. These new laws reduce burdens today, but vigilance — and legal guidance — will safeguard your financial future tomorrow.