1 month ago
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The pledge by the New Patriotic Party (NPP) flagbearer, Vice President Dr Mahamudu Bawumia, to scrap the Electronic Transaction Levy (E-Levy) and other taxes has attracted varied reactions from Ghanaians.
While some view the potential abolition of these taxes as a relief from their financial burdens, others remain skeptical about the Vice President’s commitment to his promises.
At the launch of the NPP’s manifesto in Takoradi on Sunday, Dr Bawumia reiterated his pledge to eliminate the E-Levy, abolish the betting tax, reduce withholding tax for small-scale gold exports to one per cent, and consolidate all levies into a single Value Added Tax line item.
“We’ll implement broad tax reforms, offering a one-time tax amnesty to all Ghanaians and corporate entities, wiping the slate clean from previous tax obligations. This will give everyone a fresh start in their tax journey,” he told an enthusiastic crowd.
However, Economist and Professor of Finance at the University of Ghana, Prof. Godfred Bokpin, in an interview with the Ghanaian Times, urged Dr Bawumia to demonstrate commitment by influencing policy changes to remove the taxes now, rather than waiting until after the elections.
Despite his reservations, Prof. Bokpin commended Dr Bawumia for his bold stance on reversing some of the current government’s decisions, like the E-Levy.
Prof. Bokpin acknowledged the NPP’s manifesto for its economic policy proposals, but expressed concern over their implementation.
He said the promise to abolish the E-Levy, a tax introduced by the current government, could affect the credibility of the NPP.
This credibility deficit, Prof. Bokpin noted, could impact the effectiveness of the proposed policies.
“As a motivation, there is conventional wisdom in saying that let’s start afresh. There is some level of forgiveness here, and therefore, the state is extending a hand of forgiveness to businesses and individuals who have defaulted,” he said.
Additionally, Prof. Bokpin suggested that Dr Bawumia should review the number of ministers he planned to work with, advocating less than 40 ministers.
He urged the next government to focus on reducing costs and eliminating waste, to create fiscal space for economic growth.
On the other hand, Akosua Yeboah, a trader at Circle, expressed relief at Dr Bawumia’s promise to scrap the E-Levy.
“I’m so relieved to hear that the NPP plans to scrap the E-Levy. It’s been a huge strain on my business, and I’m confident that this move will help me grow my enterprise,” she said.
An entrepreneur, Kwame Boakye, also praised the NPP’s plan to invest in local talent and technology start-ups.
“With this investment, I believe we will see more innovative solutions to Ghana’s problems, and more jobs will be created for young people. It is refreshing to see a political party prioritise technology and innovation. I believe this will give Ghana a competitive edge in the global market,” he said.
A commercial driver, Elikem Addo, said he was skeptical about the NPP’s promises, accusing the party of engaging in political gimmicks to secure another election victory.
“If they were serious about addressing these issues, they would have done so already. But now, they’re just trying to save their political skin,” he said.
BY BENJAMIN ARCTON
-TETTEY & AGNES OWUSU
