Electronic Levy the necessary evil, measures to correct this

In light of the current political administration, the implementation of an Electronic Levy (E-Levy) has become a contentious issue, with proponents arguing that it is a necessary evil to generate revenue for the government, while opponents believe it will place an unfair burden on taxpayers and stifle economic growth.

First and foremost, it is important to understand the rationale behind the E-Levy. The government is facing a significant revenue shortfall due to various factors such as declining oil prices, reduced tax collection, and increased government spending.

To bridge this gap and fund essential services such as healthcare, education, and infrastructure development, the government has proposed the introduction of an E-Levy, which will impose a tax on electronic transactions, including mobile money transfers, online purchases, and digital services.

Proponents of the E-Levy argue that it is a necessary evil to boost government revenue and ensure financial sustainability. They contend that the E-Levy will help reduce the country's reliance on external borrowing and international aid, which often come with stringent conditions and high interest rates.

Furthermore, they argue that the E-Levy will help broaden the tax base and ensure that everyone contributes their fair share towards national development.

Moreover, supporters of the E-Levy point to the potential benefits of increased revenue generation, including improved public services, infrastructure development, and social welfare programs. They argue that the E-Levy will help create a more equitable and inclusive society by redistributing wealth and resources to those in need.

Additionally, they believe that E-Levy will help promote financial inclusion and formalize the informal economy, which will in turn boost economic growth and job creation.

On the other hand, opponents of the E-Levy argue that it is a regressive tax that will place an undue burden on low-income earners and small businesses. They contend that the E-Levy will increase the cost of doing business, discourage investment and innovation, and hinder economic growth. Furthermore, they argue that E-Levy will disproportionately impact the poor and vulnerable, who rely on mobile money transfers and digital services for their daily transactions.

Critics also raise concerns about the potential for misuse and abuse of the E-Levy revenue, citing past instances of corruption and mismanagement within the government. They argue that without proper oversight and accountability mechanisms in place, the E-Levy could become a tool for political patronage and cronyism, further widening the gap between the rich and the poor.

In evaluating whether the E-Levy is a necessary evil, it is important to consider the broader socio-economic context within which it is being proposed. The current political administration is facing unprecedented challenges, including the COVID-19 pandemic, rising inflation, and high unemployment rates.

In this context, the government needs to find innovative ways to generate revenue and stimulate economic growth while ensuring that the most vulnerable are protected.

The government must strike a balance between revenue generation and social protection, ensuring that the E-Levy does not exacerbate existing inequalities and injustices. This requires robust regulatory mechanisms, transparent governance structures, and meaningful stakeholder engagement to ensure that the E-Levy is implemented fairly and equitably.

strategic measures that could be implemented to save the ailing Ghanaian economy without resorting to the controversial E-levy.

One of the key strategies to consider is improving tax compliance and enforcement. Ghana has a relatively low tax-to-GDP ratio compared to other countries in the region, indicating a significant tax gap that needs to be addressed. By cracking down on tax evasion and ensuring that all eligible businesses and individuals pay their fair share of taxes, the government can increase revenue without burdening the economy with new levies.

This could be achieved through stronger enforcement measures, such as conducting audits, implementing technology-driven tax collection systems, and increasing penalties for tax evaders.

Another important measure is to diversify the economy and reduce reliance on traditional sectors such as mining and agriculture. Ghana has a rich endowment of natural resources, but the over-reliance on these sectors has made the economy vulnerable to external shocks, such as fluctuations in commodity prices.

By promoting industries such as manufacturing, services, and technology, the government can create new sources of revenue and job opportunities, thereby reducing the country's vulnerability to external shocks.

Furthermore, investment in infrastructure development is crucial for driving economic growth and attracting foreign investment. Improving roads, ports, and other essential infrastructure will not only boost productivity and efficiency but also enhance Ghana's competitiveness as a business destination. This, in turn, can attract foreign direct investment (FDI) and stimulate economic growth without the need for new levies.

Additionally, promoting financial inclusion and access to credit can help stimulate economic activity and support small and medium-sized enterprises (SMEs). SMEs are the backbone of Ghana's economy, contributing significantly to employment and GDP growth. By providing affordable credit and business support services to SMEs, the government can help these businesses thrive and contribute to economic recovery.

Moreover, investing in human capital development is essential for long-term economic growth and sustainability. Ghana has a young and growing population, making investments in education, skills training, and healthcare critical for enhancing productivity and competitiveness. By prioritizing human capital development, the government can create a skilled workforce that is capable of driving innovation and growth in key sectors of the economy.

In conclusion, there are several strategic measures that Ghana can implement to save its ailing economy without resorting to the controversial E-levy. By improving tax compliance, diversifying the economy, investing in infrastructure, promoting financial inclusion, and prioritizing human capital development, the government can create a sustainable path to economic recovery and growth.

These measures must be implemented transparently and inclusively, taking into account the concerns and needs of all stakeholders. By working together towards a common goal, Ghana can overcome its economic challenges and build a stronger, more resilient economy for the future.