He averred that the tax measure implemented by government in March this year has not achieved its purpose.
Dr Ampaabeng said reviewing the E-Levy downwards will make it attractive to all, which will in turn rope in many Ghanaians to generate revenue for the country.
In an interview with CitiNews, the tax analyst said, “E-levy as it stands, I would say it has failed and it’s got to the point where the government has to review it, probably reduction in rates if it’s not to be abolished. The government needs to look at reducing the rates to make it less attractive for people not to pay.
"But as it stands, if you spend about GH¢5000 and you’re going to pay maybe an E-Levy of close to GH¢100, surely the person would rather spend time and go to the bank to do physical transactions and you also need to look at what impact this is having on the broader economy,” he added.
He opined that Ghana's problems could only be solved if the country has substantial domestic revenue.
Dr Ampaabeng listed property tax as a means the country can depend on to rake in more money to stabilize the wobbling economy.
“What will solve Ghana’s problem is having substantial domestic revenue. We need a revenue base that will guarantee every year in and year out. IMF is going to be a one-off package to support the economy but post-IMF what happens? And that is why we keep slipping back. The country is not generating enough and it is time for us to do a proper system audit, and look at which areas can we really generate revenue. Property tax is one,” the tax analyst stated.
It would be recalled that government, in March this year, imposed a 1.5% charge on all electronic transfers above GH¢100.
The tax policy is a move by the government to widen the country's tax net.
Meanwhile, the charging entities for the E-Levy are telecommunications companies, commercial banks, special deposit-taking institutions and Payment Service Providers (PSPs).
Mobile Money (MoMo) transaction since the introduction of the tax policy has witnessed a decline in business, MoMo Association has said.
As of September this year, data from the GRA showed that about GH¢328 million has been collected as E-Levy.
Government's target for E-Levy by end of 2022 is GH¢600 million.
Tax analyst, Dr Alex Ampaabeng