Among the numerous benefits of the government’s decision to scrap the controversial Electronic Transfer Levy (E-Levy), the move is expected to reignite public trust and confidence in digital financial and payment systems.
This is an observation by a Digital Financial Services (DFS) Consultant and Fintech Communications Strategist, Eunice Asantewaa Ankomah.
The industry player is convinced the decision is a boost for the sector and a defining moment for Ghana’s digital financial sector
Eunice Asantewaa Ankomah says the removal of the E-Levy, which took effect few days ago, will do far more than relieve consumers of an unpopular tax. She says it will serve as a catalyst for rebuilding the digital economy’s foundation of trust and accessibility.
The E-Levy, introduced in 2022, imposed a 1.5% (later reduced to 1%) charge on electronic transactions. While its intent was to expand the tax net and shore up public finances, it triggered widespread public dissatisfaction and a sharp decline in mobile money usage. Many Ghanaians reverted to cash transactions, undermining years of progress made in digital financial inclusion.
With the reversal of the policy, Eunice Asantewaa Ankomah is optimistic that transaction volumes are set to soar again to drive the sector.
But more importantly, the confidence and the trust in the digital financial services space that were “thrown to the dogs” courtesy the E-levy will be restored.
“Its removal will do more than boost transaction volumes; it will restore confidence in digital financial services,” the Fintech Communications Strategist indicated in an article on the removal of the levy cited by The High Street Journal.
She added that “The removal of the E-Levy will not merely be a policy reversal—it will be an important step in rebuilding trust in digital financial products like mobile money. By reducing the financial burden on users, it will encourage the broader adoption of digital payments.”
By eliminating the E-Levy, she explains that the cost barrier will be minimized, hence attracting customers who reverted to cash transactions.
Affordable digital transactions will also help small businesses, particularly those in the informal sector, integrate more fully into the digital economy. Customers will be more inclined to make electronic payments to these businesses without fear of incurring additional taxes.
For her, the impact of restoring trust cannot be overstated. With the burden of transaction charges lifted, many expect a surge in both transaction volumes and values. Increased usage will make it easier for fintech companies and mobile money operators to optimize operational costs and deliver better value to customers.
