We can’t wait for the abolition of e-levy – Koforidua traders
Traders in Koforidua have expressed their enthusiasm for the proposed abolition of the Electronic Levy (E-Levy), as promised by President Mahama and the National Democratic Congress (NDC).
According to the traders, E-Levy not only adds extra costs for their clients but also causes significant inconvenience during transactions for goods and services.
Speaking with Xtreme Media Online in Koforidua on January 20, 2025, a trader who wished to remain anonymous expressed her eagerness for the abolition of the e-levy, stating that the levy, among other taxes, has failed to yield any tangible benefits for the country’s economy and therefore should be scrapped.
“It should be suspended very fast. Most of the taxes the government has been taking from us haven’t yielded any good returns on the economy. We have all these monies, but we keep borrowing and seeking foreign aid,” she stated.
Mr. Nimo, a barber in Koforidua, pointed out that the low-income workers and small business owners such as himself are disproportionately affected, as they rely heavily on mobile money for their daily transactions.
Many others expressed concerns that their customers are increasingly reluctant to accept the tax charges to transactions, which is gradually affecting their businesses and that they want to see the abolishment of e-levy soon because,
Background :
Finance Minister-designate, Dr. Cassiel Ato Forson, pledged, on January 13, 2025, to remove both the E-Levy and the betting tax from the government’s first budget, upon his approval.
He pointed out that the E-Levy has a deterrent effect on digital transactions, thereby hindering the country’s transition towards a cashless economy.
“My position on the E-levy is well known, and I do not intend to run from it. I have written articles against the e-levy; I championed the position against the e-levy, and I still stand by it. The e-levy is neither a direct tax, an indirect tax, nor an excise tax. I insist that the betting tax must be abolished, and as Finance Minister, I will abolish it in my first budget because it has failed.”.
The Electronic Transaction Levy, otherwise referred to as E-Levy, was introduced on May 1, 2022, amidst overwhelming public outcry and rejection. The levy was first pegged at 1.7%, but following further consideration, the charge was reduced to 1.5% at the time of its implementation.
Subsequent to its implementation, the Ghana Revenue Authority announced that the E-levy charge was to cover mobile money payments, bank transfers, merchant payments, and inward remittances.
In spite of their forceful rejection of the levy prior to its implementation, Ghanaians have since been obliged to comply. Just as it was with other previous levies, the then opposition National Democratic Congress (NDC) kicked against the implementation of E-Levy, but the government at the time went ahead and implemented the levy.