Economist Professor John Gatsi expressed skepticism regarding the feasibility of the New Patriotic Party’s (NPP) flagbearer, Dr. Mahamudu Bawumia, fulfilling his promise to eliminate the electronic financial transactions tax, known as the e-levy, along with four other taxes if elected as Ghana’s president.
Dr. Bawumia had committed to scrapping the e-levy and other taxes to promote the use of electronic payment channels.
Professor Gatsi countered this proposal, highlighting the challenge of implementation, given that the e-levy was introduced by the government to generate revenue, aligning with International Monetary Fund (IMF) requirements for an extended credit facility.
According to Professor Gatsi, Dr. Bawumia’s pledge is perceived as a political strategy aimed at enhancing his appeal to voters in the upcoming general elections.
The economist asserted that such a commitment would be impractical for the NPP’s flagbearer to fulfill if elected as president.
“I believe that all these discussions are going to be centered on 2025, and it is just a political strategy to make Bawumia look good for the election because you have already created a revenue stream for this government, and the IMF program will not end in 2025. So, to say, you need the same level of revenue to sustain the program. I don’t understand how you will be able to take one revenue source from the kitty and remain sustainable in the eyes of the IMF.”
“What Bawumia should be saying is that he will propose taxes A or B to replace the e-levy. If that is not what he is saying, then it is not something he can do, especially under the IMF programme.”