Ghana’s Parliament has officially repealed two controversial taxes — the Emissions Levy and the 10% Betting Tax — after months of public outcry and operational setbacks. The decision, passed on March 26, 2025, is being hailed as a bold move to ease the rising cost of living and business operations in the country as economic recovery remains fragile.
The Emissions Levy, introduced in 2024 under the previous administration, was aimed at reducing carbon emissions from vehicles and industrial activities to support the country’s environmental goals. But despite receiving parliamentary approval, the policy never took off.
Speaking in Parliament, Deputy Finance Minister Mr. Thomas Ampem Nyarko confirmed that “practical challenges hindered the rollout, resulting in no revenue being collected.” He explained that while the policy’s intention aligned with Ghana’s green agenda, the implementation lacked adequate stakeholder engagement, infrastructure support, and operational clarity.
Vehicle owners, transport unions, and logistics companies had resisted the Emissions Levy, arguing that it would sharply increase their costs and make operations difficult. Critics also questioned how the funds would be used, expressing concerns about transparency and whether the initiative was truly meant to benefit environmental protection or simply generate revenue.
Finance Minister Dr. Cassiel Ato Forson, backing the repeal, noted that the government would return to the drawing board to consult more broadly with citizens, civil society groups, and industry leaders to design better, more effective climate policies that wouldn’t burden low- and middle-income Ghanaians.
The Betting Tax, another unpopular policy, had targeted a fast-growing sector dominated by digital platforms and youth participation. The 10% tax on betting winnings faced immediate backlash from online users, gaming companies, and fintech observers who said the move risked stifling innovation and pushing activity into unregulated offshore spaces.
Many young people who use betting apps and online gaming for supplementary income expressed their frustrations on social media, describing the tax as a move that disproportionately affected them, especially amid limited employment opportunities.
Industry players like the Ghana Union of Traders Association (GUTA), transport operators, and other business groups applauded Parliament for listening to public opinion. In a joint statement, GUTA said, “This repeal is not only timely but necessary. Businesses are struggling, and this gives everyone breathing space. We are ready to work with government to develop better tax policies that help the economy grow.”
However, while the tax relief has brought short-term joy to citizens and businesses, questions are now being raised about how the government intends to fund its green initiatives and regulate emerging sectors like online betting and digital finance.
Analysts say the repeal highlights a key lesson: no matter how well-intentioned a policy is, it must be practical, inclusive, and aligned with current realities. Climate experts also caution that Ghana still faces urgent environmental risks and that new solutions must now be found to meet emissions targets.
Several alternative ideas have been suggested, including:
Public-private partnerships for green tech innovation;
Incentives for eco-friendly vehicles and industries;
Use of carbon credits and international climate funds;
Grants to support sustainable development programs.
The government has already indicated it is exploring these options. The Ministry of Finance has hinted at working with development partners and private investors to fund climate-related projects without taxing ordinary citizens.
Digital economy experts have also proposed that instead of taxing betting users directly, a licensing framework or levy on the companies operating in the space could provide a better balance between revenue generation and consumer protection.
Some commentators believe that repealing the Betting Tax also opens the door for deeper reforms in how Ghana governs its growing digital economy, especially with the increasing presence of fintech platforms, mobile money, and online trade.
What remains clear is that citizens are more engaged than ever in policy matters. The repeal of these taxes signals the importance of inclusive governance, and that future tax reforms — whether for climate, health, or digital growth — must be grounded in thorough consultation, fairness, and clear benefits.
As Ghana balances its books and strives for long-term sustainability, policymakers are being reminded that trust, transparency, and practicality are just as important as the goals they pursue.
