By King Amoah.
In a bold call to action, Mr. Benjamin Asalimba, a prominent journalist based in Kumasi, Ashanti Region, is urging the government to reconsider its stance on the electronic transaction levy (e-levy) taxations.
Asalimba argues that the excessive burden of multiple taxes is stifling economic growth and hampering the ability of local business entities to thrive.
In an exclusive interview with King Amoah Managing editor of the Connectghananews.com, Asalimba said in the last few years, revenue generation for national development has not made any impact in the country.
However, the national reforms through, particularly the introduction of the e-levy, have sparked widespread debate among citizens and business owners alike.
According to the affable media guru the e-levy, imposed on digital transactions, was initially intended to broaden the tax base and provide financial support for various government projects.
Yet, many entrepreneurs argue that it has had the unintended consequence of escalating costs and pushing consumers away from electronic payment platforms.
Asalimba amplifies this concern, suggesting that the cumulative effect of multiple tax impositions has created an environment where businesses struggle to stay afloat.
“The reality is that our entrepreneurs are facing insurmountable challenges due to these taxes,” he stated.
“The e-levy, in conjunction with other existing taxes, burdens small and medium-sized enterprises (SMEs) that are crucial for job creation and economic development in the country.”
He highlights that Ghana a country to a vibrant blend of businesses and innovative startups, could face further economic decline if policymakers do not address the issue of taxation.
A vibrant business environment, Asalimba asserts, is vital for fostering job creation and generating wealth at the local level. With many SMEs already grappling with rising operational costs, the additional strain of the e-levy could discourage entrepreneurship and stifle innovation.
Asalimba also notes that the global trend towards cashless transactions should be embraced rather than discouraged through punitive measures, he concluded .
“Rather than taxing digital transactions, government should focus on creating a supportive ecosystem for digital businesses,” he said. “Incentives, reduced taxation, and support mechanisms will provide the needed boost for enterprises to harness the benefits of technology.”
In response to the economic challenges exacerbated by the e-levy, Asalimba advocates for a comprehensive review of the country’s tax policies to strike a balance between generating revenue and fostering a conducive business environment. He believes that a more thoughtful approach to taxation will not only alleviate pressure on businesses but also encourage compliance and enhance overall economic activity.
With Ghana’s economic future uncertain, the suggestions put forth by Mr. Asalimba resonate with many citizens who are calling for a shift toward policies that prioritize business growth. As the government evaluates its approach to taxation, it is becoming increasingly clear that measures must be taken to support local enterprises while ensuring the economy remains resilient and dynamic.
