Three major economic reasons Ghana needs E-Levy - Akufo-Addo explains

Akufo-Addo makes a case for E-Levy

Parliament struggling to pass E-Levy

Akufo-Addo ties E-Levy to 'Ghana Beyond Aid' agenda

President Nana Addo Dankwa Akufo-Addo has made a strong case for the ‘hanging’ Electronic Transaction (E-Levy) Bill currently awaiting passage by the Alban Bagbin-led hung Parliament.

The president has reiterated the importance of the E-Levy giving reasons why

Read full articleits passage is crucial to the economy in terms of how it is managed at home and how Ghana deals with external partners.

While delivering the keynote address at the 2022 National Labour Conference at Kwahu-Nkwatia in the Eastern Region, the President stated that it was time to expand the tax net and not leave 2.4 million people, “to carry the direct tax burden of 30.8 million people.”

GhanaWeb picks out three reasons Akufo-Addo clamoured for the passage of the E-Levy

1 - An opportunity for everyone to contribute to nation-building

The President said expanding the tax net was important because it will ensure that more Ghanaians play their role of contribution towards nation-building.

“We must provide an opportunity for every Ghanaian to contribute toward nation-building”, he said.

2 - An innovative measure to boost tax-to-GDP ratio

He described the levy as an ‘innovative fiscal measure’ which he stressed will boost Ghana’s tax-to-GDP ratio fairly.

“The proposed E-Levy is such an innovative fiscal measure which will help improve our tax-to-GDP ratio on an equitable basis. I believe strongly that it is in the public interest that it should be enacted into law.”

3 - A key driver in ‘Ghana Beyond Aid’ dream

Ghana Beyond Aid was a mantra government rolled out in its first term, a measure that received praise because it was seen as a sure route to stay off especially unsustainable and ever-rising public debt.

“We cannot continue to live on foreign savings. It is time we accepted the full implications of our goal of ‘Ghana beyond aid’ and design our fiscal profile accordingly.”

Akufo-Addo drags NDC over E-Levy opposition

In early February 2022, President Akufo-Addo made comments about the E-Levy when he addressed traditional leaders from Dzodze in the Volta region, he stressed that government was determined to raise revenue despite strict resistance by the opposition.

“These are the efforts that we are now making which are being resisted by the opposition but we will try and close the gap. That is the reason it has become necessary for us to use these measures like this famous tax which has caused so much unnecessary, in my view disputation; nevertheless, we would continue.

“These are the efforts that we are now making which have been being resisted by the opposition as we try and close the gap. It is necessary for us to do so because that is the only way which some of these matters can be addressed,” Akufo-Addo added.

Government has yet to retable the Bill which was shelved in December 2021 after MPs engaged in an open fight over voting procedures relating to it.

The Finance and Information Ministers are currently leading a series of town hall meetings to explain it better to the citizenry even though the Minority have vowed to continue putting up stiff opposition to it.