It’s Official: Next NDC Gov’t To Stop E-Levy

The newly introduced Electronic Transfer Levy (E-Levy) would be completely scrapped off and no Ghanaian would ever have to pay for it again if the National Democratic Congress (NDC) wins the 2024 Presidential elections, former President John Mahama has revealed.

Mr. Mahama was clear and direct when he said the “National Democratic Congress government, God willing and with the votes of the sovereign people of Ghana – in 2025 – will repeal the E-Levy Act”, the law that makes E-Levy mandatory.

The former president now turned presidential-hopeful was speaking at a public lecture held at the Kempinski Hotel in Accra on Monday night [May 2, 2022] on the topic: “Ghana at a crossroads”

He said though the NDC, in principle, does not oppose taxation the party is however, “implacably opposed to distortionary and burdensome taxes like the e-levy that only force Ghanaians to endure more suffering”

Former President Mahama accused the Nana Akufo-Addo led-Government of the New Patriotic Party of being a wasteful one that has failed to demonstrate prudence in public financial management.

He noted further: “The people of Ghana cannot be called upon to pay more taxes only for the accruing money belonging to the people of Ghana, to be dubiously and wastefully shared among family and friends through various fraudulent procurement practices. The creature comforts of the President and his officials cannot be more paramount than the need to protect the public purse and make savings that can be invested in more useful ventures. Ventures such as: education, health, and social housing for Ghanaians.

“The 2020 Auditor-General’s report makes for grim reading within the context of waste and corruption in the use of public funds. The report revealed that a colossal GH¢12 billion was lost to corruption and other forms of financial malpractices in 2020 alone. This is twice the amount that the unpopular e-levy is supposed to accrue this year. It has also recently come to light that our State-Owned Enterprises made total losses of about GH¢5.3 billion in 2020.

“Another report has revealed that up to GHS 9 billion of losses was incurred by Energy Sector SOEs between 2018 and 2021. How can the taxpayer ever be called upon to pay more when his money is going down the drain in this manner?” John Mahama added.

He continued: “Unfortunately, in the face of this self-inflicted economic catastrophe, this government against all sound advice has decided to introduce the E-Levy, a regressive tax that heaps more suffering on Ghanaians.

“Recently our President was asked in a BBC interview, why he was choosing to tax the incomes of Ghanaians in their electronic wallets that had already been taxed. The President’s answer was that it is the newest and fastest growing sector of our economy that is not being taxed.

“Clearly the President did not understand the question, or he is clueless about the regressive nature of the E-Levy. A worker gets paid in his electronic wallet. His PAYE tax has been deducted already. For every transfer or purchase above GHS100 he makes on his e-wallet, he has to pay an additional 1.5% tax.

“It will now be tempting for such a person to draw cash from his e-wallet and make the payment for his groceries, fuel, entertainment, utility bills etc. all with cash.”