Ghana’s plan to remove the E-Levy and COVID-19 tax has sparked concerns about the potential revenue loss. According to a tax analysis report by Francis Timore-Boi, the removal of these taxes could result in a total revenue loss of GHS 22.15 billion between 2025 and 2027.
The E-Levy is projected to generate GHS 2.4 billion in 2025, while the COVID-19 Levy is expected to contribute GHS 3.97 billion. Combined, both levies would bring in GHS 6.37 billion in 2025. However, abolishing these levies would result in a revenue shortfall of GHS 7.37 billion in 2026 and GHS 8.41 billion in 2027.
Analysts warn that this revenue shortfall could exacerbate fiscal pressures, undermine the government’s ability to meet essential development and operational needs, and increase Ghana’s exposure to economic risks. To offset this revenue gap, some industry players suggest reducing import exemptions, which could generate approximately GHS 9 billion in tax savings.
While the proposed cancellation of the E-Levy and COVID-19 tax aligns with the NDC’s goal to alleviate the tax burden on households and businesses, the economic trade-offs require careful analysis, especially during Ghana’s ongoing economic recovery efforts.
CNR/Ruth Abla ADJORLOLO
