Please don’t scrap e-levy – GRA to political parties

Amid promises from political parties to abolish the Electronic Transfer Levy (E-Levy) following the 2024 general elections, Charles Addae, the Assistant Commissioner of the Ghana Revenue Authority (GRA), has urged whichever party emerges victorious to retain the tax measure.

He emphasised the importance of maintaining this revenue source to bolster the state’s finances, cautioning that its elimination could result in heightened government reliance on loans.

Addae underscored the significance of sustaining the E-Levy in enhancing the country’s tax-to-GDP ratio and stimulating the local economy.

He emphasised that adequate revenue is essential for effective governance and urged the government to prioritise fiscal sustainability.

Speaking to the media on the sidelines of the Taxing Mobile Money: Lessons and Ways Forward Conference held in Accra on Wednesday, February 28, 2024, the GRA Assistant Commissioner said, “It is good that people pay tax. We are having some political talks about whether the tax may be cancelled in the future.

“We are pleading that it is better we sustain the revenue that is coming from it. The GHC1.2 billion that was raised in 2023 helped fill some holes in the country; otherwise, we may be depending too much on loans, which is not helping the economy.”

“My plea is that we maintain and help increase the tax on the GDP of the nation to help the development agenda of the government. Whichever government is in power needs revenue to run. Without tax revenue, the country cannot run,” he added.

It may be remembered that Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), declared his intention on February 7, 2024, to eliminate the electronic transfer levy if he were to be elected as Ghana’s president.

“To accomplish this, there will be no taxes on digital payments under my administration. The E-Levy will, therefore, be abolished,” Dr. Bawumia stated.

Unfair E-Levy tax will be scrapped if I’m made president – Mahama

John Dramani Mahama, his opponent, also pledged to abolish the E-Levy during a speech at the University of Ghana. The NDC flagbearer argued that the tax was unjust and hindered citizens from embracing a cashless society.

“It is an inequitable tax; it’s not a fair tax It prevents people from taking advantage of our move towards a cashless society and so when NDC comes, we will remove that tax. I’ve said it bluntly,” Mahama said.

The government introduced the E-Levy as part of its efforts to enhance domestic revenue mobilisation. In response to considerable criticism, the E-Levy tax was subsequently reduced from 1.5% to 1%.