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Zeqblog Blog of Sunday, 5 January 2025
Source: Okine Isaac
Unexpectedly, President-elect John Mahama has reneged on his campaign pledge to repeal the Electronic Levy (E-Levy) and other associated taxes that the Akufo-Addo administration imposed.
After strongly opposing the E-Levy and Covid tariffs during his campaign, the next president, John Mahama, now argues that these levies are linked to the International Monetary Fund (IMF) and cannot be instantly eliminated.
Introduced in 2022, the E-Levy is a 1.5% tax on electronic transactions, such as bank transfers, merchant payments, and mobile money transfers.
The opposition National Democratic Congress (NDC) vigorously opposed the tax, claiming that small enterprises and low-income individuals would be disproportionately impacted.
If elected within the first ninety days, NDC flagbearer John Mahama had pledged to do away with the E-Levy and other nuisance fees.
But it now looks like the administration of John Mahama won’t be able to keep this promise right away.
The E-Levy and other levies are among the IMF’s requirements for Ghana’s economic rescue plan, Mr. Mahama stated while speaking at a seminar.
Prior to signing the IMF contract, former Finance Minister Ken Ofori-Atta advocated the e-levy, which was never linked to the IMF conditionalities.
This implies that before the taxes can be eliminated, they must be “neutralized.”
Many Ghanaians who had thought that the new government would alleviate the tax burden will probably be disappointed by the news.
Particularly, the E-Levy has drawn criticism for its effects on the weak and impoverished.
It is unclear how Mahama’s administration would handle this difficult situation and strike a compromise between the demands of the IMF program and the necessity to keep its campaign pledges.
