The recent election of John Dramani Mahama as President of Ghana has reignited discussions around the controversial Electronic Transfer Levy (E-levy). Mahama, who campaigned on a platform promising to abolish the E-levy along with other burdensome taxes, faces significant pressure to fulfill this pledge.
The E-levy, introduced in 2022 at a rate of 1.75%, was intended to enhance domestic revenue but quickly became unpopular among citizens and businesses alike.
Critics argue that it imposes an additional financial burden on users of mobile money services, which are vital for many Ghanaians. Mahama’s commitment to remove the E-levy is seen as a necessary step to alleviate these pressures and stimulate economic growth.
Economists like Professor Stephen Adei emphasize that while the removal of the E-levy is a political necessity for Mahama, it must be part of a broader tax reform strategy. They advocate for a comprehensive review of Ghana’s tax system to streamline revenue collection and reduce reliance on taxes that are difficult to enforce.
The Mobile Money Agents Association has also voiced strong support for the repeal, arguing it would enhance digital financial inclusion and support mobile money businesses.
However, concerns arise regarding the potential impact on government revenue. The E-levy contributes significantly to the national budget, and its removal could create fiscal challenges. Critics warn that Mahama’s administration must carefully manage expectations and avoid introducing new taxes to compensate for lost revenue.
In conclusion, Mahama’s promise to abolish the E-levy reflects a critical response to public sentiment and economic realities. As he navigates these challenges, his administration will need to balance tax relief with sustainable fiscal policies to ensure economic stability and growth in Ghana.
From Opera News.
