E-Levy removal requires regulatory approval, can’t take immediate effect – MTN CEO

MTN Ghana CEO, Stephen Blewett, has clarified that the abolition of the Electronic Transfer Levy (E-Levy) cannot take immediate effect, as it must go through regulatory approval.

His remarks follow President John Dramani Mahama’s assent to legislative bills aimed at scrapping several taxes, including the E-Levy, Betting Tax, and Emissions Tax.

Speaking at MTN House in Accra on April 2, Blewett acknowledged public anticipation but stressed the need for compliance with regulatory procedures.

“There is a process that has to be followed. 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,” he said.

He emphasized that while the government has signaled its intention to remove the levy, telecom operators like MTN must follow official directives before making changes.

Blewett also highlighted the negative impact of the E-Levy on mobile money transactions and expressed optimism that its removal would revitalize the sector.

“The reason for the abolishment of E-Levy is to encourage momentum in mobile money,” he explained.

While acknowledging that the tax removal is expected to boost digital transactions and financial inclusion, he assured that MTN would implement the change only after receiving official instructions.

“We will follow the process. And once it’s gone, mobile money will regain its strength.”

The E-Levy, initially introduced at 1.75% before being reduced to 1%, taxed electronic transactions, including mobile money payments, bank transfers, and inward remittances. Since its introduction in 2022, it has faced widespread criticism, with opponents arguing that it imposed an additional financial burden on citizens and discouraged digital transactions.