MTN Ghana has officially ceased deductions of the one percent Electronic Transfer Levy (E-Levy) on all mobile money (MoMo) transactions following the enactment of new tax reforms by the government.

In a message sent to customers on Thursday, April 3, the telecom giant confirmed that the levy has been abolished and will no longer apply to MoMo transfers.

The move follows President John Dramani Mahama’s signing of a new tax bill into law on Wednesday, April 2, 2025, which also scrapped the betting tax and emission tax.

E-Levy abolished, but implementation followed due process

The removal of the E-Levy sparked public inquiries about the implementation timeline. Addressing concerns at MTN House in Accra on April 2, MTN Ghana’s CEO, Stephen Blewett, emphasized that while the government had approved the repeal, telecom operators had to adhere to regulatory procedures before stopping deductions.

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“I can’t abolish E-Levy until I’m told to do it. If I do it ahead of time, the Bank of Ghana will catch me. So we have a process that has to be followed, and we will follow that process,” Blewett explained.

He further highlighted that the removal of the E-Levy is expected to revitalize the mobile money sector, which had experienced a slowdown due to the tax. “The reason for the abolishment of E-Levy is to encourage momentum in mobile money,” he noted, adding that digital transactions are likely to increase as a result.

GRA directs charging entities to stop deductions
Following the presidential assent to the Electronic Transfer Levy (Repeal) Bill, 2025, the Ghana Revenue Authority (GRA) issued a directive to all charging entities, instructing them to immediately stop deducting the one per cent levy.

The directive, which took effect on April 2, 2025, ensures that all mobile money transactions are now exempt from the levy. In a statement, the Office of the Commissioner of the Domestic Tax Revenue Division clarified that the Electronic Transfer Levy Management and Assurance System (ELMAS) had been updated to reflect the new policy.

"All charging entities must cease applying the 1% E-Levy from midnight on all their channels," the statement read.

Additionally, the GRA has instructed all entities to process refunds for any deductions made after the levy was officially abolished. Charging entities must also maintain detailed records of all reimbursements and submit them to the GRA for accountability purposes.

Mahama fulfils campaign pledge to scrap E-Levy

The abolition of the E-Levy, Betting Tax, and Emission Tax marks a major policy shift by President John Dramani Mahama, fulfilling a key campaign promise of the National Democratic Congress (NDC). The tax repeal follows the presentation of eight tax-related bills to Parliament by Finance Minister Dr. Cassiel Ato Forson on March 13, 2025.

Since its introduction in 2022, the E-Levy had been widely criticized for disproportionately affecting ordinary citizens and small businesses. Its removal is expected to ease financial burdens on Ghanaians and stimulate digital transactions, particularly within the mobile money sector.

President Mahama reaffirmed his commitment to reducing financial strain on Ghanaians, stating, “This is a commitment we made to the people of Ghana, and today, we have honoured it.”

As the new tax policies take effect, experts predict increased mobile money transactions, improved financial inclusion, and a potential boost in digital commerce across the country.