Former Dome-Kwabenya Member of Parliament, Sarah Adwoa Safo, has defended her decision to oppose the controversial Electronic Transactions Levy (E-Levy), emphasizing that it was a major factor in the New Patriotic Party’s (NPP) electoral loss.

In an interview on JoyNews' The Pulse on Thursday, March 20, Adwoa Safo explained why she refused to support the policy, arguing that it failed to fulfill its intended purpose and instead placed an undue burden on Ghanaians.

"I didn’t vote for the e-levy, and I have no regrets about my decision," she stated. "I refrained from supporting it because I believed it wouldn’t benefit the people of Ghana. Instead, it would take away from their already limited resources, especially the most vulnerable members of society."

Reflecting on the NPP’s defeat in the 2024 general elections, she pointed to the e-levy as one of the key reasons for the party’s decline in popularity.

"Ghanaians voted against us partly because of the E-levy," she asserted.

She further criticized how the tax affected individuals in low-income jobs, particularly those relying on mobile money services to support their families in rural areas.

"Individuals who were most affected were those working in low-paying jobs, who relied on sending money back to their families in the villages. These individuals were already struggling, and the e-levy took away the little they had. It was a tax on their hard-earned money, further deepening their difficulties," she added.

Adwoa Safo also highlighted the contradiction between government assurances and the economic reality that unfolded after the levy’s implementation.

"We were told that by introducing the e-levy, Ghana could avoid going to the International Monetary Fund (IMF). However, in the end, we still ended up seeking IMF support. Despite implementing this tax, the government was unable to avoid the very financial assistance it promised we could manage without."

Referencing Vice President Dr. Mahamudu Bawumia’s 2024 campaign promise to abolish the e-levy, she said recent developments had validated her stance.

"I feel vindicated," she said. "If the e-levy was truly a good tax, why did we still end up at the IMF? How can we justify taxing those who are already struggling, especially when it didn’t even prevent us from seeking IMF support?"

She concluded by reiterating that the policy had failed in its objectives and only worsened financial hardship for ordinary Ghanaians.

"It just didn’t make sense," she said. "The e-levy hurt ordinary Ghanaians, and in the end, it didn’t achieve what it promised."

The e-levy, first introduced by the Finance Ministry on May 1, 2022, and signed into law by then-President Nana Akufo-Addo on March 31, 2022, originally stood at 1.75% before public backlash forced a reduction to 1%. It applied to electronic transactions, including mobile money transfers, bank transactions, and merchant payments. Critics argued that it disproportionately affected low-income earners and small businesses, fueling widespread opposition.

Meanwhile, Deputy Finance Minister Thomas Ampem Nyarko has announced that the e-levy will be scrapped by the end of March. Speaking on Channel One TV's OXFAM Tax Dialogue on Tuesday, March 18, he confirmed that its removal is tied to the approval of the 2025 budget and appropriation bill.