GRA begs political parties to rescind plans to scrap E-Levy

In the wake of political parties promising to scrap the Electronic Transfer Levy (E-Levy) after winning the 2024 general elections, the Assistant Commissioner of Ghana Revenue Authority (GRA), Charles Addae, has pleaded with whichever party that wins the elections to maintain the tax measure to generate more revenue for the state.

He stated that scrapping this source of revenue generation - E-Levy - will lead to the overdependence on loans by government.

Mr Addae, therefore, entreated government to sustain the E-Levy to increase the country's tax to GDP rate, as well as, boost the local economy.

He stressed that every government needs revenue to steer the affairs of the nation.

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 that the tax may be cancelled in future. We are pleading that it is better we sustain the revenue that is coming from it, GHC1.2billion that was raised in 2023 helped in filling 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 to GDP of the nation to help the development agenda of government. Which ever government is in power needs revenue to run. Without tax revenue, the country cannot run," he added.

It would be recalled that the flagbearer of the New Patriotic Party (NPP), Dr Mahamudu Bawumia, on February 7, 2024, announced his intention to abolish the electronic transfer levy if elected president of Ghana.

“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

His contender, John Dramani Mahama, also made the same promise while speaking at the University of Ghana.

The NDC flagbearer was of the view that the tax was unfair and prevented citizens from embracing a cashless society.

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

The introduction of E-Levy, according to the government formed part of measures to help improve its domestic revenue mobilization.

Following several criticisms, the E-Levy tax was reviewed downwards from 1.5% to 1%.







SA/NOQ