E-Levy To Go

 

Vice President Mahamudu Bawumia has promised to scrap the Electronic Transaction Levy (E-Levy) if he is given the opportunity to become Ghana’s next president.

In his ‘Next Chapter’ speech in Accra on February 7, 2024, the flagbearer of the NPP said that under his leadership, E-levy would be a relic of the past.

“I will abolish the electronic tax, popularly called E-Levy, if you give me the nod to lead you as president,” he stated.

He also outlined several other measures to improve revenue generation without burdening the already burdened taxpayers.

“To increase government tax revenue, we have to reform and refocus the Ghana Revenue Authority (GRA) towards broadening the tax base. Unfortunately, the pressure that is placed on GRA staff to collect revenues makes them focus on existing tax payers,” he added.

“Sometimes they even have to go to sit in peoples shops to monitor sales (a process known as invigilation). In fact, many businesses feel harassed by this process and the constant audits of their operations. This has to stop. We must strike the right balance between collecting revenue and allowing businesses to thrive. Our job is to protect the productive forces,” he stated.

He touched on the need to broaden the tax net. “Estimates suggests revenues amounting to 13% of GDP (or $24 billion in 2023) are not collected because people are outside the tax net. Even collecting half of or a quarter of this annually will be a game changer for public finances. To do this, we need to inculcate and enforce a culture of people filing their tax returns,” he disclosed.

To enhance a better tax administration and collection, he stated that incentives must be provided to encourage people to file their tax returns even if they will pay zero taxes.

Dr. Bawumia said that the current tax regime has been with us since independence and it has failed us. Many of the wealthy do not pay taxes (including property taxes). Too much discretion results in corruption.

“We want a regime that is easy to understand, easy to comply with and easy to enforce, which is not subject to so much discretion. Many individuals and businesses find our tax system cumbersome and confusing, and many feel harassed by the GRA,” he stressed.

BY Charles Takyi Boadu, Presidential Correspondent

 

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