The 2024 Presidential of the New Patriotic Party, Dr. Mahamudu Bawumia, has stated that he will abolish the tax on electronic financial transactions popularly known as e-levy, if elected President of Ghana.
This is the first time Dr Bawumia has made his position known to Ghanaians after the controversial tax policy was introduced in 2022 by the Akufo-Addo led NPP government.
Before the introduction, the Vice President had a contrary view on any government imposing levies on electronic financial transactions.
Addressing the nation on Wednesday (February 7, 2024) in his maiden major address as leader of the governing party, Dr. Bawumia said he would scrap the widely criticized tax to attract and encourage the population to use the electronic channels of payment. .
“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,” he declared.
Dr. Bawumia further announced that as part of a new tax regime by his government, he will also abolish the emission tax, tax on betting as well as the proposed 15% VAT on electricity tariffs, if it is in the records by 2025.
He promised introduce a friendly, flat tax regime for Ghana, which in his view will boost individuals and businesses, particularly small and medium-scale enterprises (SME’s).
“My administration will introduce a very simple, citizen and business-friendly flat tax regime. A flat tax of a % of income for individuals and SMEs, which constitute 98% of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor,” Dr Bawumia stated.
