‘Older, more educated Ghanaians more likely to support E-levy’

A new study by the International Centre for Tax and Development has found that older and more educated individuals in Ghana are generally more supportive of the country's controversial Electronic Transfer Levy, or E-levy.

The research, which surveyed over 2,700 informal workers in Accra, Ghana's capital, aimed to examine the equity and perception implications of the E-levy, introduced in May 2022.

According to the study's findings, "public perception in Ghana, at least among informal workers, is deeply dependent on people's evaluation of the current government, and their trustworthiness - not just in collecting a new tax, but also in spending it."

This seems to indicate that older Ghanaians and those with higher levels of education, who may have more experience with and understanding of governance, are more trusting that tax revenues will be spent appropriately.

Younger informal workers and those with less education appeared to be more skeptical of the E-levy according to the report.

It says "disappointment with the government's performance" was a factor in negative perceptions of the levy among these demographics.

The research also found the E-levy remains highly regressive despite measures like a 1% on 100 cedi daily tax-free threshold.