Sanction companies that evade taxes as an alternative to the killer E-levy

On 17th November 2021, the Former Minister for Finance announced during the presentation of the 2022 Budget Statement and Economic Policy of Government to the parliament of Ghana, the introduction of Electronic Transaction Levy of 1.5% on all electronic transactions above GHS 100 per day to took effect from 1st February 2022.

Since the Former Finance Minister made mentioned of the introduction of the levy, majority of Ghanaians have been agitating about it; whether it is a good alternative or not.

Per my little research, results shows most of these Ghanaians especially the youth and the aged are fiercely against such approach by the government.

Mind you that - the former finance minister, Hon. Ken Ofori-Atta expressed concerns on the number of Ghanaians paying direct taxes to the government.

Delivering the 2022 budget statement presentation on the floor of parliament, he said, “only 2.3 million Ghanaians out of the total population of 30.8 million were paying taxes.”

They argue that - times are currently hard in the country and that, should government introduce this E-levy, will be a heavy burden on citizens.

Others also suggested that there are no jobs in the country and the Levy’s introduction is likely to affect the smooth operation of small scale enterprises.

In my opinion, I agree with them, why? This is because if measures were put in place and structures were in the right order; the government through the finance ministry and the Ghana Revenue Authority (GRA) could have tracked and sanction businesses who evade taxes and these taxes alone can make up for the expected revenue to be realized from the implementation of the levy.

Years ago in 2008, under the erstwhile John Agyekum Kufuor's tenure, the Communication Service Tax (CST) was introduced at a rate of 6% of the charge for communication usage.

Meaning the CST is levied on charges for the use communication services that are provided by electronic service providers.

So if i may ask, What important thing has been done with the money realized from it?

Better alternatives such as scrapping unnecessary tax exemptions and sanctioning tax evading companies and individuals is what is needed.

"Kill the killer E-levy!!"