Economist and professor of finance, Godfred A. Bokpin, has praised Dr. Mahamudu Bawumia’s proposal to scrap the electronic transaction level [E-levy] if elected as President in December 2024.
He described Dr. Bawumia’s decision as a “bold step” and well-intentioned.
However, Prof. Bokpin says Dr. Bawumia as Vice President, can use his existing influence within the New Patriotic Party to push for the removal of the e-levy and other taxes now, than waiting until he is elected.
In a radio interview with Accra-based Peace FM on Monday [August 18, 2024] Prof. Bokpin noted that many economists and concerned Ghanaians had advised against the implementation of the e-levy, but the government chose to proceed.
He welcomed Dr. Bawumia’s commitment to scrap the tax, emphasising that the e-levy “has no future in this country,” regardless of who assumes power.
NPP Manifesto
While launching the Election 2024 manifesto of the New Patriotic Party (NPP) in Takoradi on Sunday [August 18, 2024], Dr Bawumia announced that when given power in the Presidential election slated for December 7, 2024, he will scrap the e-levy.
The e-levy was introduced in May 2022 by the Akufo-Addo-led government to generate more revenue to undertake government’s projects in the country.
Prof. Bokpin reacting to Dr Bawumia’s pledge to scrap the tax pointed out that the opposition National Democratic Congress (NDC) and other presidential aspirants have also pledged to eliminate the e-levy if given the mandate.
Prof. Bokpin stressed that democracy is about listening to the people, and “the people don’t want the E-levy.”
While acknowledging that the state has a fundamental duty to collect taxes, Prof. Bokpin argued that not all taxes are necessary or justified. He noted that although Ghana needs to generate more revenue, introducing certain tax measures is not always the solution.
Prof. Bokpin also highlighted the challenge for Dr. Bawumia in addressing the E-levy issue, given that his government introduced the tax despite widespread opposition. He suggested that to gain public trust, Dr. Bawumia should act now to remove the E-levy, rather than waiting until after the election.
He expressed some doubt about whether Dr. Bawumia would be able to fulfill his promises, urging him to take action sooner rather than later.
