Cost of remittances to shoot up if e-levy is imposed - Economist

Government announces the imposition of a 1.75% e-levy in 2022

E-levy is being introduced to widen the tax net

Stakeholders want the e-levy to be reviewed

Economist Dr Sam Ankrah has joined stakeholders and taxpayers to criticize the possible effects of the E-Levy on the country’s financial sector, describing the move as bad and retrogressive to the development of the country’s financial sector.

According to him, inward remittances are likely to drop significantly if the 1.75 per cent proposed levy on electronic transactions is not reviewed.

He believes this will subsequently result in a high cost of remittance to the country contrary to the sustainable development goal on financial inclusion.

Speaking on the topic: “Restoring Ghana’s Macroeconomic Stability and Revitalization: The Word Becoming Flesh”, Dr. Ankrah charged the government to find innovative means of revenue mobilization and work towards making the public sector work more efficiently rather than taxing such a budding industry.

“Create fiscal space to support the various streams of funding inflow absorptions through expenditure switching and substitution policies.”

“Strengthen capital budgeting processes, including the link between investment planning and the medium-term budgetary framework, and between national priorities and regional priorities”, he outlined.

He was addressing newly inducted economists into the Institute of Chartered Economists at the Annual Economists Conference in Accra.