A new study by the Centre for Policy Scrutiny has uncovered that Ghana could lose as much as GH¢18.15 billion in revenue by 2027 as a result of the scrapping of two taxes, raising serious questions about how the government will fill the gap.
Many Ghanaians and businesses consider the removal of the Electronic Transfer Levy (E-Levy) and the COVID-19 Health Recovery Levy as long-awaited relief. For instance, mobile money users no longer worry about deductions on everyday transfers.
In addition, consumers see slightly lower costs at the point of purchase. In a period where every cedi counts, the policy shift has offered breathing space.
But beneath the relief Ghanaians and businesses are enjoying lies a growing fiscal concern. The research, led by tax and fiscal policy expert Isaac Danso Agyiri and presented at a public lecture on Tuesday, reveals a clear trade-off the government is faced with.
In other words, the quick relief for households has translated into long-term pressure on public finances.
According to the findings, the now-defunct E-Levy alone is expected to cost the state about GH¢8.2 billion in lost revenue by 2027. On the other hand, the COVID-19 levy, which was once embedded in everyday consumption, accounts for an even larger chunk of the trade-off, with projected losses of GH¢9.95 billion over the same period.
The two scrapped tax handles, together, create a sizeable fiscal hole. For CPS, what makes the COVID-19 levy particularly significant is its reliability.
Unlike many tax streams, it was broad-based and relatively stable, generating over GH¢1.72 billion in 2022 and rising to nearly GH¢2.94 billion by 2024. Even when it fell short of targets, it remained a dependable contributor to government revenue.
However, the E-Levy, on the other hand, had a more turbulent journey. Introduced in 2022 to tap into Ghana’s growing digital economy, it struggled initially, missing its ambitious GH¢6.9 billion target in its first year. But over time, collections improved, crossing GH¢1.8 billion in 2024 before its eventual abolition in April 2025.
Now that both revenue streams are gone, CPS is concerned about how to replace over GH¢18 billion.
CPS, however, acknowledges the upside of the policy decision. Removing the levies improves equity, particularly for low-income earners who were disproportionately affected by consumption-based taxes. It also reduces the cost of digital transactions, potentially encouraging financial inclusion.
But the bigger question remains unresolved. Can Ghana sustain this relief without compromising its fiscal stability?
