E-Levy is a gargantuan failure; classic example of mother of nuisance taxes - Ato Forson

Cassiel Ato Forson, the Member of Parliament (MP) for the Ajumako-Enyan-Esiam Constituency, has asserted that the electronic transaction levy (E-levy) is a failed policy.

He said the NPP should admit their guilt for something urgent to be done to salvage the situation.

Mr. Ato Forson, who is also a Ranking Member on Parliament’s Finance Committee, stressed that if the E-levy is the only option to save this country, then Ghana is doomed.

According to him, the levy was not able to generate the expected income government projected.

The legislator added that, regardless of the numerous positive impressions created around the controversial levy by the government and their followers, it has flopped.

“If the e-levy is the only homegrown that you have then I’m sorry to say this is a failed government because the e-levy has failed. And I say this because if you project to do revenue 475million Ghana cedis in a month and you end up getting 54 million then that is a gargantuan failure.

“I have never seen a tax policy that has underperformed so woefully than what I’ve seen. This is a classic example of a mother of nuisance taxes.

“Upon all the noise that we saw with the e-levy, the way you couched it, the way you marketed it, impressions that were created – at a point I even joked in parliament that it is going to cure the bald-headedness of my colleague honourable Ablakwa – we were told that it was going to be the Akobam of this world, the modern-day Akobam, it will solve every single economic problem. Today look at how gargantuan it has underperformed. This is a failed policy, let’s admit,” he stated.

Speaking on the PM Express Show on JoyNews, an Accra-based television station, on Monday, June 27, 2022, Mr. Ato Forson said he knew from the onset the e-levy was destined to fail.

He reiterated that no one should put their hopes in the E-levy because it will not deliver, let alone meet the government's estimated GHC6.9 billion yearly target.

“In fact I knew it was going to fail because the structure and design of the e-levy, it was bound to have the accident that we’re seeing. That the tax policy that was designed without factoring in the fact that there are some elasticities, without factoring in the fact that the demand may change because it’s a choice and obviously the rate at which you’re increasing the rate will mean that people will change their behavior towards that tax. I’m not surprised we’re seeing this.

“Yes, you can tickle yourself and create the impression that e-levy will perform going into the line but I can assure you that the GHS6.9billion that you have budgeted in the budget that you’ll get, you’ll struggle to even get the point nine, you won’t get the point nine,” he said.

His comment follows Mr. Gabby Otchere Darko, a staunch member of the ruling New Patriotic Party (NPP) who revealed that government was only able to make 10%.

He noted that only GHS60million was realised from the expected GHS600million.

“After 5 months of stalemate and bashing, the e-levy, after implementation, is delivering only 10% of estimated revenues; our revenues remain very low as compared to the rest of the world; debt levels dangerously high, cedi, like most currencies, struggling against the US dollar.

“What options are open to government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m,” Gabby tweeted