The recent statement from former Finance Minister Dr. Kwabena Duffuor adds to the ongoing debate surrounding the Electronic Transfer Levy (E-Levy) in Ghana. Dr. Duffuor’s suggestion to scrap the tax if it is not meeting its revenue targets reflects the concerns raised by critics of the E-Levy.
Critics argue that the E-Levy is burdensome and could stifle financial inclusion and discourage the use of digital payment systems. They also claim that the tax disproportionately affects the poor, who heavily rely on mobile money services for financial transactions.
Dr. Duffuor’s statement aligns with the sentiments expressed by various stakeholders, including civil society organizations and industry players. These groups have called for a review or complete removal of the E-Levy, citing its negative impact on the economy and the public.
The implementation of the revised E-Levy rate of 1% by the Ghana Chamber of Telecommunications further intensified the discussion around this tax. The government introduced the E-Levy to increase revenue generation and bridge the fiscal deficit. However, its effectiveness and impact on the economy are now being questioned.
It remains to be seen whether the Akufo-Addo government will consider revising or removing the E-Levy based on its revenue performance and public sentiment. The ongoing debate and Dr Duffuor’s recent statement highlight the need for a thorough evaluation of the E-Levy and its implications for Ghana’s economy and citizens.
This decline in mobile money subscribers in April 2022 could potentially be attributed to the implementation of the E-Levy. Critics of the tax have raised concerns that it could discourage the use of digital payment systems, including mobile money services.
The loss of over 300,000 mobile money subscribers highlights the potential negative impact of the E-Levy on financial inclusion in Ghana. Mobile money services have played a crucial role in promoting financial inclusion, especially for the unbanked population. Discouraging the use of these services could hinder efforts to expand access to financial services and narrow the financial inclusion gap.
The decline in active mobile money subscribers also raises questions about the effectiveness of the E-Levy in meeting its revenue targets. If the tax is causing a decline in mobile money usage and subscribers, it could lead to a decrease in the expected revenue generation from this sector.
This further strengthens the argument of critics who have called for a review or complete removal of the E-Levy. It highlights the need for a careful evaluation of the potential negative consequences of the tax on financial inclusion, revenue generation, and the overall economy.
Source: Apexnewsgh.com/Ghana
For publication please kindly contact us on 0256336062 or Email: apexnewsgh@gmail.com
