Renowned economist, Professor John Gatsi has described Vice President, Dr. Mahamudu Bawumia’s commitment to abolish the contentious e-levy as a “political strategy.”
Professor Gasti argues that the e-levy has evolved into a significant revenue source for the government, making its elimination challenging, especially amidst the country’s ongoing IMF bailout.
In a report featured on citinewsroom.com, Prof. Gatsi asserts that the IMF might oppose its removal given that the bailout program extends beyond 2025.
He urged the 2024 flagbearer of the NPP to present alternative revenue strategies he intends to implement if elected.
“I believe that all these discussions are going to be centred 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.”
Vice-President Dr. Mahamudu Bawumia has made it clear that he intends to abolish the electronic financial transactions tax, known as the E-Levy, if elected president of Ghana.
During his inaugural national address on Wednesday, February 7, Dr. Bawumia reiterated his stance against taxes on electronic financial transactions, and also pledged to remove the tax on betting among others.
“To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will therefore be abolished,” Dr Bawumia announced.
Source: myjoyonline.com
