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In a bold declaration, Vice President Dr Mahamudu Bawumia has announced his intention to abolish the Electronic Transfer Levy (E-levy) if elected President.
Addressing the nation at the University of Professional Studies (UPSA) in Accra today, the Vice President noted that the removal of the levy will aid the government’s cashless economy agenda.
“To move towards a cashless economy, however, we have to encourage the population to use electronic channels of payment. To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will therefore be abolished.
This announcement comes in the wake of the enactment of the Electronic Transfer Levy Act, 2022, by the Parliament of Ghana.
The Electronic Transfer Levy Act, of 2022, was passed to regulate and impose a levy on all electronically transferred monies in Ghana.
This move was part of the government’s efforts to broaden the country’s tax base and increase revenue mobilization. Initially, the levy was set at 1.50% on all electronic transfers, but following criticism from the Minority in Parliament and the general public, the government revised the rate to 1 percent.
Despite the adjustment, Vice President Bawumia has made it clear that he is committed to abolishing the E-levy altogether if he assumes the presidency.
This declaration echoes similar promises made by the flagbearer of the National Democratic Congress (NDC), John Mahama, who has also pledged to abolish the 1% Electronic Levy if elected.
Speaking at the 75th New Year school event at the University of Ghana, he reiterated the levy was a burden.
“This is an inequitable tax, it’s not fair and prevents people from the uptake of moving towards a cashless society and so when NDC comes we would remove that tax,” he said.
With both major political parties vying for the support of the Ghanaian electorate, the issue of the E-levy is expected to feature prominently in the upcoming presidential election.
Voters will likely weigh the promises of each candidate regarding taxation and economic policies as they decide who to support in the polls.
