Majority of Ghanaians say E-Levy is a bad idea, Report
51% of respondents do not have confidence in government, Afrobarometer report
A new Afrobarometer report has shown that three-fourths of Ghanaians do not approve of the passage of the electronic transfer levy.
The survey revealed that 67 percent of persons who partook strongly disapprove of the levy while only 19 percent approve of the tax.
The Electronic Transfer Levy was introduced on May 1 in a bid to widen the tax net.
“However, a large majority of Ghanaians think it is a bad idea and will mean a greater tax burden on citizens. Many do not trust that the government will use the revenues generated to fund development programs, and citizens are almost evenly split as to whether they will continue to use electronic financial transactions,” portions of the report noted
The study further shows that a majority of Ghanaians believe there are several important goals that a tax revenue system must achieve.
These include ensuring citizens understand the taxes they pay, reducing the tax burden, using tax revenues more effectively, and ensuring citizens and businesses honor their tax obligations.
Key findings from the report:
1. Three-fourths of Ghanaians disapprove of the e-levy, including 67% who “strongly disapprove” of it. Only two in 10 (19%) endorse the new tax.
2. A similar proportion (76%) think the e-levy is a bad idea because it will increase the tax burden on the poor and ordinary citizens. This includes 63% who “strongly agree” with this view.
3. Three-quarters are also “not very confident” (24%) or “not at all confident” (51%) that the government will fulfill its pledge to use the revenues generated by the e-levy to fund development programs.
4. Faced with the e-levy, Ghanaians are about evenly split as to whether they will continue to use electronic financial transactions (47%) or avoid using them (49%)
5. A majority of Ghanaians agree that there are several important goals that a tax revenue system must achieve, including ensuring that people understand the taxes they owe (82%), reducing the tax burden (81%), using tax revenues more effectively (83%), and ensuring that citizens and businesses pay taxes (79%).
SSD/MA
Electronic transfer levy