A student at the University of Media, Arts and Communication (UNIMAC) has challenged Vice President Dr. Mahamudu Bawumia’s commitment to eliminating the Electronic Transfer Levy (E-Levy) once he assumes the presidency of Ghana.
In an interview with TV3, the UNIMAC student expressed skepticism about Bawumia’s decision to reverse an initiative introduced by his own government, questioning his credibility.
The student believes that Bawumia’s stance portrays Ghanaians as easily manipulated individuals.
“E-levy he bought himself scraping it off as in how? I mean sometimes they say things that they think that the youth are foolish, I don’t know if I can use the word. For me I think it doesn’t make sense. Scrapping it, he brought it, you are taking us on a path that you think is leading us on the right place and at the end of the day you are blacking us off telling us you will scrap it. Are you lying to us? I mean everyone knows what he is saying doesn’t make sense,” he added.
The E-levy, introduced by the Akufo-Addo-led administration in the 2022 Budget, targets basic digital payments and electronic platform transactions exceeding GH¢100 daily.
It’s crucial to distinguish this levy from the 1 percent charge imposed by telecommunication companies on transactions.
Upon its inclusion in the 2022 Budget statement, the E-levy stirred controversy, raising concerns about potential double taxation and its impact on the economic challenges faced by ordinary Ghanaians.
Critics argue that the levy could disproportionately affect low-income earners who heavily rely on daily mobile money transfers for their livelihoods.
On February 7, 2024, Dr. Bawumia declared his intention to abolish the tax on electronic financial transactions, emphasizing its role in achieving a digital and cashless economy.
“To transition to a cashless economy, we need to encourage the use of electronic payment channels. To facilitate this, there will be no taxes on digital payments under my administration. Therefore, the e-levy will be abolished,” he added.
Dr. Bawumia also outlined plans to eliminate the emission tax, betting tax, and the proposed 15% VAT on electricity tariffs.
He further announced the introduction of a straightforward and business-friendly flat tax regime in Ghana, with a focus on providing support to individuals and businesses, particularly small and medium-scale enterprises (SMEs).
“My administration will implement a straightforward, citizen- and business-friendly flat tax regime.”
“This will involve a flat tax percentage of income for individuals and SMEs, which represent 98% of all businesses in Ghana, with appropriate exemption thresholds to safeguard the poor.”
tigpost.co
