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 the centre on Tuesday, April 7, 2026, with the research led by fiscal policy and tax specialist, Isaac Danso Agyiri.
The study examined the fiscal and equity implications of removing the two major revenue streams, alongside the betting tax. While it found that the policy shift offers some relief to households and improves fairness in the tax system, it warned that the move comes at a significant cost to government revenue mobilisation.
According to the report, the abolition of the E-Levy alone is expected to result in a cumulative revenue loss of about GH¢8.2 billion by 2027. The removal of the COVID-19 levy is projected to account for an additional GH¢9.95 billion over the same period, bringing the total estimated shortfall to GH¢18.15 billion.
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 system. He noted that the levy generated over GH¢1.72 billion in 2022 and rose steadily to approximately GH¢2.94 billion by 2024, despite occasionally missing targets.
In contrast, the E-Levy, introduced in 2022 to expand the tax net through digital transactions, recorded a more inconsistent performance. It fell far 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 it was scrapped in April 2025.
Beyond revenue considerations, the study also highlighted equity concerns surrounding the taxes. It found that the E-Levy disproportionately affected low- and middle-income earners who rely 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,” Mr. Agyiri stated.
However, he cautioned that the fiscal consequences 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 place additional strain on public finances and affect the government’s ability to meet its expenditure commitments,” he added.
The report also assessed the broader economic impact of the abolished taxes. It noted that while the E-Levy initially slowed the growth of mobile money transactions, the sector demonstrated resilience and rebounded over time. Its removal is therefore expected to further boost digital financial activity and inclusion.
Similarly, scrapping 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 gap, the report highlighted ongoing government efforts to improve revenue mobilisation, including reforms within the Value Added Tax system, enhanced compliance measures, and adjustments to the tax refund regime. However, it warned that these initiatives may not fully offset the losses from the abolished levies.
Speaking at the event, the Executive Director of CPS, Adu Owusu Sarkodie, stressed the need for evidence-based and sustainable tax policies.
“We believe 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 said.
He further noted that platforms such as the CPS public lecture play a critical role in promoting informed debate on key economic policy issues and strengthening accountability in decision-making.
The lecture, which attracted policy analysts, academics, students, and civil society actors, forms part of CPS’s broader efforts to deepen public understanding of tax policy and its implications for national development.
