Professor Godfred Bokpin, an economist and lecturer in finance, has once more asked the government to eliminate the Electronic Transaction Levy (E-Levy), calling it a burdensome tax.
He said on Joy FM Super Morning Show, "One significant policy intervention they named E-Levy, and of course many Ghanaians did not favour E-Levy, and I still don't support E-Levy and I will still push government to remove the E-Levy."
He claims that the government's budgetary reforms outlined in the 2022 Budget fall short of expectations.
Gabby Asare Otchere-Darko, a cousin of President Akufo-Addo, tweeted yesterday[27/06/2022] that the E-Levy has only generated $60 million so far compared to the objective of $600 million since its installation two months ago.
If you recall from the ministry, the government developed improved measures. There are a few travel restrictions here and there. Therefore, the 2022 Budget and all those improved initiatives fell short of what stakeholders and investors had hoped for.
Professor Bokpin of the University of Ghana said, "And you could see that also on our yields on our bonds.
The result increases the current fragility and exposes the deficiencies in our economy in a level that we haven't seen in recent years, he continued. "Then you see immediately Russian-Ukraine; we may not be seeing the bullet right here [Ghana]".
In the past three months, inflation has been increasing more quickly, reaching a high of 27.6 percent in May 2022.
The price hikes for some products and gasoline are the main causes of the growing inflation. This has also had an impact on transportation costs and some product pricing.
You can see where inflation is, and it looks that we are rather powerless, according to Professor Bokpin. In addition to all the other taxes, growing inflation is also a tax, especially for low-income households that lack the wherewithal to hedge their little assets and savings against it.
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