Mahama promises next NDC government will scrap E-Levy
Finance Ministry, GRA to address challenges with implementation of E-levy
Former Director of Finance and Administration of the New Patriotic Party (NPP), Dr Charles Dwamena (alias Dr China) has opined that former President John Dramani Mahama will change his mind on repealing the Electronic Transfer levy (E-Levy) by 2025 - if he wins the next elections.
This according to him will be a result of the progress that would be made with proceeds from the levy in the country’s developmental needs.
Contributing to a discussion on Asaase Radio’s news analysis and current affairs show “The Forum” on May 7, Dr. Dwamena observed that Ghanaians desire to see the proper utilization of the taxes garnered from the levy.
He noted that the E-commerce sector was gradually being utilized a lot as a result of the advent of Covid-19, hence the need to tax some categories of electronic transactions.
“It’s not so much about the money being collected as against what it’ll be used for. And I believe that in all honesty, Mahama will have a change of mind come 2024 because he’ll see real progress made with the taxes.
“And that’s what every Ghanaian is looking at. Because this sector [e-commerce] cannot be left just like that, it’s growing in leaps and bounds. When you look at e-commerce in Ghana as of 2016, it was no where near even a GH₵100 billion. But as at 2020, just before COVID-19 and immediately after COVID-19, it just ballooned and you can’t just leave it like that,” Dr. Dwamena said.
He noted that “a time will come where the volume of trade and commerce on e-platforms will far supersede that of the traditional banks.”
Background
Former President John Dramani Mahama at a public lecture dubbed “Ghana At A Crossroads” on May 2 reiterated the NDC’s commitment to abolish the E-levy when it wins power.
According to him, the levy which the NDC has labeled as “draconian” is imposing an extra burden on Ghanaians.
“We in the NDC do not oppose taxation as a principle. We will not be pretentious and couch fanciful slogans to condemn the principle of taxation like the NPP did in the past.
“We are, however, implacably opposed to distortionary and burdensome taxes like the e-levy that only force Ghanaians to endure more suffering.
“A new National Democratic Congress Government, God willing and with the votes of the sovereign people of Ghana – in 2025 – will repeal the E-Levy Act.,” John Mahama told the gathering.
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Dr Charles Dwamena