E-Levy is problematic and lacks neutrality – Economist
E-Levy concerns likely to impact government’s revenue mobilization – Prof. Oteng-Abayie
Professor Eric Oteng-Abayie, an economist at the Kwame Nkrumah University of Science and Technology has called on government to harness its existing tax sources instead of introducing new ones.
According to a Joy Business report, he opined that the already existing tax measures in place have over a period not yielded the required revenue due to the failure of successive government’s effectively managing the tax policies.
Speaking at the public forum organised on the Electronic Transfer Levy at the KNUST, Prof. Oteng-Abayie bemoaned the inconsistencies in the implementation of tax policies which have resulted in revenue losses over the years.
“If the government is able to develop the permanent sources of taxes including the income tax and the property tax which has not been particularly focused on and actually target the right bases that have to pay these taxes," he is quoted to have by Joy Business.
“When the government withdraws taxes that it has already introduced, then it means the government is not really researching the places that need to be taxed and that is problematic,” Prof. Oteng-Abayie added.
Touching on the implementation of the E-Levy, the KNUST professor said concerns surrounding the E-Levy is likely to impact government’s revenue mobilization and described the tax measure as problematic since it lacks neutrality.
“Because of the revenue assurance issues and delays in the e-levy implementation, it is believed that the target revenue may not be actually achieved. A good tax policy should have neutrality. That is, it should not only affect a certain group of people or business model, but it should have a broad base such as the Value Added tax.” he explained.
Government has been urged to harness existing tax sources