The MTN CEO has shed light on why the E-Levy will persist on transactions in the short term, despite its abolition. According to the CEO, the E-Levy’s removal requires adjustments to the system, which takes time. The levy was initially introduced to widen the tax net and rope in the informal sector, with the government projecting to rake in tax revenue of about GH¢6.96 billion (US$1.1 billion) in 2022.

The E-Levy, which was implemented in February 2022, imposed a 1.5% tax on electronic transactions, including mobile money payments, bank transfers, and merchant payments ². The levy was met with mixed reactions from stakeholders, with some supporting it as a means to collect public revenue, while others criticized its potential negative impact on digital payments and financial inclusion.

The MTN CEO’s explanation suggests that the abolition of the E-Levy is not a simple process, and its removal will require technical adjustments to the system. This means that customers will continue to pay the levy in the short term, despite its official abolition.

It is unclear when the E-Levy will be fully removed from transactions, but the MTN CEO’s statement provides insight into the complexities involved in reversing the levy. As the situation develops, customers and stakeholders will be watching closely to see how the abolition of the E-Levy unfolds.