The introduction of Ghana’s 1.5% e-levy sparked criticism, with opposers noting its disproportionate impact on low-income earners, inefficiency, and fairness.
The introduction of the electronic transaction levy (e-levy), a 1.5% tax on mobile money transactions, sparked intense debate across the country. Critics, including former Auditor General, Daniel Dumelevo, have joined the opposition, arguing that the levy amounts to a form of robbery.
He argued that it disproportionately impacts low-income earners while worsening the rising cost of living.
Mr. Dumelevo voiced these concerns during an interview on Onua TV, stressing the unfair nature of the tax and its potential to push users back to cash transactions, which raises safety and accessibility issues.
Many people share Dumelevo’s skepticism regarding the government’s intentions behind the e-levy. The public perceived the tax as another burden in an already challenging economic terrain, particularly as inflation continues to erode purchasing power.
The government initially projected that the e-levy would generate substantial revenue for national development, but early reports suggest that collections have fallen short of expectations.
The e-levy’s regressive nature has drawn criticism from various sectors, with many informal workers expressing disapproval. Data indicates that lower-income individuals bear a disproportionate share of the tax burden compared to wealthier citizens. This disparity raises concerns about equity and fairness in a country where a momentous portion of employment is informal.
Despite the government’s assurances that the e-levy will bolster public finances and enhance financial inclusion, many remain unconvinced. The perception that previous taxes have not translated into tangible benefits for citizens fuels skepticism about the e-levy’s efficacy.
Mr. Dumelevo’s recent appointment to the President-elect, John Mahama’s five-member Oral Committee further emphasizes the urgency of addressing corruption and financial mismanagement in the outgoing administration.
As part of this committee, he is tasked with gathering data on financial misconduct, reflecting a growing public demand for accountability.
