Ghana’s 2026 budget report on revenue performance in 2025 has revealed an unexpected twist in the story of the controversial E-Transaction Levy.
Although the E-levy was scrapped earlier this year in the month of April after intense public backlash, the controversial levy raked in far more money than the government had projected, raising fresh questions about whether its repeal came too quickly.
According to the 2026 Budget, the government expected to collect GH¢517.7 million from the levy in 2025. But by the third quarter alone, the outturn had hit GH¢812.7 million. That’s a 57% jump above the target, achieved within just months before the abolishment took effect.
This dramatic performance raises unavoidable questions that if the levy was doing this well, did the government underestimate its potential? And in scrapping it, did the country lose a revenue stream that could have eased fiscal pressures?
A Levy Born in Controversy
When the E-levy was introduced in 2022, it sparked one of the most heated national debates in recent memory. Many Ghanaians feared it would burden the poor, punish digital transactions, and push people back to cash.
Protests erupted. Parliament nearly broke down over it. The rate was slashed, adjustments were made, and eventually, the levy was scrapped entirely in 2024.
Yet the new budget numbers tell a different story, one that suggests the levy was quietly becoming a solid revenue performer.
A Surprising Outturn: 57% Above Target
The government’s own data shows that from January to April, before the repeal took effect, expected to raise a revenue of GH¢517.7 million
However, the actual revenue accumulated stood at GH¢812.7 million
This means the E-levy didn’t just meet its target, it outperformed it by a wide margin and did so far earlier than expected.
For a government in dire need to raise enough revenue to fund social programs, settle arrears, and stabilize the economy, losing a tax instrument that was finally gaining traction is striking.
Did the Government Rush the Repeal?
With a 57% over-performance recorded in just a few months, many will ask whether political pressure overshadowed fiscal logic.
At a time when Ghana still battles with low tax-to-GDP ratios, high borrowing needs, and persistent budget deficits, letting go of a proven revenue-raiser may have long-term consequences.
However, despite the potential it has shown in its last days, the fact still remains that the E-levy was absolutely unpopular.
But was it becoming effective? The numbers suggest so.
And now that the levy is gone, one cannot help but wonder if the government could have kept it, perhaps redesigned, simplified, or adjusted, instead of discarding a policy that was beginning to deliver?
