E- Levy: Let’s focus on demanding accountability

There was heavy vehicular traffic on the Adenta – Dodowa road on this particular day, passengers onboard the trotro (Commercial bus) expressed great distress, some wondering if they were ever going to reach home.

Others wondered loudly what could have happened ahead that had resulted in such heavy traffic, there has always been traffic on this road in recent times but the traffic today seems to surpass any day.

Suddenly the bus driver branched off the road, in search of an alternative route to help them move a bit faster, he did not miss the usual “hey driver, where do you think you are headed,” others advised him to calmly follow the regular route for fear of being in ‘more trouble’ and yet others sat quietly and slept off in frustration.

The driver used a rather bumpy road which sometimes made the passengers onboard the bus shake to the bone, some visibly angry would shout “Driver towbo” to wit, exercise patience, before long they were back on the main road.

They had been able to dodge to most intense part of the traffic, the vehicle seems to be moving smoothly. The passengers onboard the bus seemed more relaxed now, they expressed high hopes of getting home shortly.

Akosua (not the real name) was somehow satisfied that they were riding smoothly, she was one of the concerned voices when the driver veered off the main route in search of alternative route, her concern was their safety.

She said she wanted the driver to be accountable to them.

The scenario above can be compared to Ghana’s economic situation now with the Electronic Levy debate.

Many people have admitted that we are riding in turbulent economic times, brought on by many factors including the Covid-19 pandemic

The E- Levy is a new tax measure that will be applied only to the originator of a transaction on an electronic platform.

Electronic platforms include the following; fintech platforms, online banking and Momo platforms.

Many Ghanaians have criticized the imposition of an electronic transaction tax, citing hardship as the main reason

However, Government says only a small proportion of Ghana’s population carried the tax burden, and that it was incumbent on the Government to find innovative ways of bringing everyone on board to contribute their quota for rapid national development.

Some people have alluded that Ghana is “broke” and yet government is not willing to go borrowing, the only way to have money as a nation was therefore through the payment of taxes

“It is time we accepted the full implications of our goal of Ghana Beyond Aid, and designed our fiscal profile accordingly.

The Asian Tigers, whom we envy and want to emulate, financed their rapid development from their own savings. We need to do the same,” President Akuffo-Addo said at the opening of the maiden National Labour Conference

He said the E-Levy was an innovative fiscal measure that would shore up Ghana’s fiscal profile, and raise the funds needed for the speedy transformation of the economy.

It is in public interest that the proposed Electronic Transaction Levy (E-Levy) be enacted into law to improve the country’s tax-to-GDP ratio on an equitable basis, the President said it was time for Ghana to raise money domestically to fund its development imperatives and end its dependence on foreign savings.

President Akuffo -Addo said transforming the economy would require the active involvement and participation of all, including the large informal economy, “We have to make concerted efforts as partners to hasten our recovery from COVID-19 by finding intelligent ways of bringing everyone on board to contribute their quota, no matter how small.”

The average tax-to-GDP ratio in West Africa stands at 18 per cent, and the average for OECD countries standing at 34 per cent.

“It is, thus, no wonder that American, German, French, Japanese and British peoples, amongst others, can readily find the means to fund their own development, particularly their infrastructural development, whereas we are constantly struggling to do the same.

President Akuffo-Addo said “We cannot continue to allow less than ten percent of the population, about 2.4 million people, carry the direct tax burden of 30.8 million people… we must provide an opportunity for every Ghanaian to contribute towards nation-building.”

Like the Commercial bus driver on the traffic prone road, some think, that the Akuffo-Addo led government is right in using alternative unfamiliar route to help steer us to our preferred destination, while others think otherwise

Yet, others also believe that the E-Levy is a step in the right direction and what we can do us citizens will be to demand accountability.

For instance, government should be able to tell us as Ghanaians, how much money is in Government’s coffers at any point in time, how much of that goes in to the payment of let’s say the salaries of government workers, how much is used for development and to build infrastructure, how much goes into fuel subsidies, how much goes into procurement, how much is used to build social support systems that caters for the vulnerable like the aged or children with disabilities and the list goes on

Like Akosua on the commercial bus, the writer thinks that many Ghanaians should rather be concerned with accountability issues, thus” if I am contributing so much in taxes, I should also know exactly where my tax goes and what my tax is doing for me and my fellow Ghanaians.”

Instead of condemning and using defeatist words on the nation you belong to, one should rather wish good for the country. Akosua in the commercial bus said their safety was her concerned, if the driver veered off into dangerous terrain, they will all be affected.

In the same way, if someone wish evil for a country that we all live in, we will all be affected including the ill-wishing person, why not offer a prayer of prosperity for Ghana in these times.

Perhaps the E-Levy is a necessary evil that should make every Ghanaian be a citizen and not a spectator, ask questions, be concerned and demand accountability