It’ll be difficult for Bawumia to scrap e-levy – Prof. Gatsi

Economy & Investments Itll be difficult for Bawumia to scrap e-levy – Prof. Gatsi
FEB 9, 2024 LISTEN

An economist, Professor John Gasti, says flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, will not be able to scrap the taxes on electronic financial transactions, also known as e-levy, as proposed if he is elected president of Ghana.

Dr. Mahamudu Bawumia pledged to abolish the e-levy and four other taxes to encourage the population to use electronic channels for payment.

Reacting to the flagbearer’s proposal, Professor John Gasti said fulfilling it would be a challenge as the levy was introduced by the government to generate revenue, as part of requirements by the International Monetary Fund for the grant of an extended credit facility.

Professor Gatsi described the proposal as merely a political strategy to make Dr. Bawumia a sellable candidate to voters in the general elections.

He indicated that it is something the NPP’s flagbearer cannot do when voted as president.

“I believe that all these discussions are going to be centered on 2025, and it is just a political strategy to make Bawumia look good for the election because you have already created a revenue stream for this government, and the IMF program will not end in 2025. So, to say, you need the same level of revenue to sustain the program. I don’t understand how you will be able to take one revenue source from the kitty and remain sustainable in the eyes of the IMF.”

“What Bawumia should be saying is that he will propose taxes A or B to replace the e-levy. If that is not what he is saying, then it is not something he can do, especially under the IMF programme.”