The Abolition of E-Levy in Ghana: A Bold Move by President Mahama
In a recent political move that has sparked discussions across Ghana, former President John Dramani Mahama made headlines by calling for the abolishment of the controversial Electronic Levy (E-Levy) introduced by the current government. This bold proposal aims to reverse a policy that has been met with mixed reactions from the public, with some viewing it as an unnecessary burden on the already financially stressed Ghanaian populace.
Background on the E-Levy
The E-Levy was introduced in 2022 as part of the government’s broader tax reform agenda. The objective was to generate domestic revenue for critical infrastructural development and reduce Ghana’s reliance on foreign loans and grants. It was designed to tax electronic transactions, including mobile money transfers, bank transactions, and payments made through digital platforms.
While the intention behind the E-Levy was to increase government revenue and enhance financial inclusion, the policy faced immediate opposition from a significant portion of the Ghanaian population. The government claimed that the levy would generate crucial funds for development, but many citizens, particularly the youth and small-scale traders who rely on mobile money for daily transactions, felt the E-Levy was an unfair burden.
The President’s Proposal for Abolition
John Dramani Mahama, in his capacity as a key figure in the National Democratic Congress (NDC), has long been a critic of the E-Levy. In his recent public address, he argued that the policy was detrimental to the average Ghanaian and would only exacerbate the country’s economic challenges. According to Mahama, the levy disproportionately affected low-income earners and micro-businesses, which are the backbone of the Ghanaian economy.
The former president went further to suggest that the revenue expected from the E-Levy was not worth the financial strain it placed on the general population. He called for a more equitable approach to taxation—one that targets wealthier individuals and corporate entities rather than penalizing the everyday citizen for their use of digital financial services.
Public Reactions to the Abolition Call
The proposal to abolish the E-Levy has been met with both support and opposition. Many Ghanaians, especially those from the informal sector, have welcomed Mahama’s call for the levy to be scrapped. For many of them, mobile money services represent a lifeline for conducting business, and the additional charge on these transactions only added to their financial struggles.
On the other hand, supporters of the current government’s E-Levy argue that scrapping the policy would lead to a significant shortfall in government revenue, potentially resulting in budget deficits and delays in critical national projects. They believe that a fairer approach could be to restructure the levy or raise awareness on its importance rather than abolish it altogether.
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