MTN Ghana Announces Removal of E-Levy on Mobile Money Transactions After Government Tax Reforms

In a major financial development for mobile money users across Ghana, MTN Ghana has officially declared that it will no longer apply the Electronic Transfer Levy (E-Levy) on Mobile Money (MoMo) transactions. This announcement comes in response to the recent repeal of the controversial tax by the Ghanaian government. The move has been warmly welcomed by mobile money users, financial institutions, and digital economy stakeholders who had long criticized E-Levy for discouraging digital transactions.

Also Read, Good News for Taxpayers: E-levy and Betting Tax Abolished in 2025 Budget

The landmark decision was communicated to customers on Thursday, April 3, 2025, via an official statement from MTN Ghana. In the message, the telecom giant confirmed that the 1% levy on electronic transfers conducted through mobile money services would no longer be deducted from users’ transactions. According to MTN Ghana, this change is effective immediately, following the signing into law of a new tax bill by President John Dramani Mahama just a day prior, on Wednesday, April 2, 2025.

President John Dramani Mahama signed the abolishment os E-Levy

This new legislation not only scrapped the Electronic Transfer Levy but also eliminated two other unpopular taxes: the betting tax and the pollution tax. Together, the removal of these levies signals a broader shift in government policy aimed at reducing the financial burden on citizens and promoting a more inclusive digital economy.

Introduced in 2022, the E-Levy was a 1% tax on electronic financial transactions, including mobile money transfers, bank transfers, and merchant payments. The tax was designed to increase domestic revenue and support government projects. However, it was met with widespread criticism from the public, civil society organizations, and digital finance experts who argued that the levy disproportionately affected low-income earners and discouraged the use of digital financial services.

Many mobile money users began reducing their transaction volumes to avoid the extra cost, while others shifted to cash-based transactions. Financial analysts warned that the E-Levy could undermine the country’s progress toward financial inclusion, especially among the unbanked population that relies heavily on mobile money platforms for everyday transactions.

Also Read, Good News for Taxpayers: E-levy and Betting Tax Abolished in 2025 Budget

MTN Ghana, the country’s leading telecom operator, has been at the center of the mobile money ecosystem and was responsible for collecting the E-Levy on behalf of the government. With over 20 million subscribers and a dominant share of the mobile money market, the company played a key role in the implementation and eventual discontinuation of the levy.

In his public remarks on April 2, 2025, at the company’s headquarters; MTN House in Accra, Stephen Blewett, the Chief Executive Officer of MTN Ghana, addressed the widespread public demand for clarity on when the E-Levy removal would take effect. Blewett reassured customers that the company was working closely with government agencies to ensure a smooth transition. He emphasized MTN’s commitment to supporting Ghana’s digital transformation and praised the government’s efforts to listen to the concerns of citizens.

“This is a significant step forward in encouraging the adoption of digital payments,” said Blewett. “By eliminating the E-Levy, the government has made it easier and more affordable for people to send money, pay bills, and conduct business digitally. MTN Ghana is proud to be a part of this journey and will continue to innovate in ways that benefit our customers and the broader economy.”

With the removal of the E-Levy, mobile money users in Ghana can now enjoy more affordable transactions. Whether you're sending money to a family member, paying for goods and services, or topping up airtime, you will no longer be charged the 1% fee that was previously deducted from every transfer. This will be especially beneficial for small business owners, market traders, and informal sector workers who rely heavily on MoMo platforms for daily financial transactions.

Customers can expect to see the changes reflected in their transaction summaries and should no longer notice the E-Levy deduction. MTN Ghana has encouraged users to contact customer support for any questions or issues regarding the updated transaction policies.

MTN to Customers

The repeal of the E-Levy and its subsequent removal from MoMo transactions are expected to have a significant positive impact on Ghana’s digital economy. Experts predict a resurgence in mobile money usage, increased financial inclusion, and improved trust in digital platforms.

Digital finance specialists note that E-Levy had stifled innovation in the fintech space and discouraged investment in digital payment solutions. With the tax now abolished, startups and fintech companies may find a more favorable environment for growth, product development, and user acquisition.

Moreover, Ghana’s position as a digital finance leader in West Africa could be further solidified as a result of these tax reforms. Other countries in the region are closely observing Ghana’s policy changes and their outcomes, which could influence future tax legislation across the continent.

The public has largely reacted positively to the removal of the E-Levy. Social media platforms, online forums, and news comment sections have been flooded with praise for the government's decision, with many users expressing relief at the elimination of what they saw as an unjust and regressive tax.

Some economic analysts also believe that the repeal could carry political benefits for President Mahama’s administration, as it demonstrates a willingness to respond to citizens' concerns. The move could bolster public trust and approval ratings, especially ahead of upcoming political campaigns or economic reforms.

As Ghana enters a new era of digital finance without the burden of E-Levy, stakeholders are watching closely to see how transaction volumes respond and whether the anticipated economic benefits materialize. Government officials have hinted at alternative revenue strategies that will not interfere with digital financial activity. Meanwhile, MTN Ghana and other service providers are expected to continue enhancing their platforms to accommodate increased user activity.

Also Read, Good News for Taxpayers: E-levy and Betting Tax Abolished in 2025 Budget

In summary, the elimination of the E-Levy marks a significant turning point in Ghana’s financial policy landscape. MTN Ghana’s swift implementation of the change shows strong corporate responsibility and customer focus. As MoMo users nationwide begin to feel the financial relief, the broader implications for digital financial services, fintech innovation, and economic inclusion are bound to unfold in exciting and transformative ways.

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