Professor John Gatsi, an economist, claims that if Dr. Mahamudu Bawumia, the leader of the New Patriotic Party (NPP), is elected president of Ghana, he would not be able to abolish the e-levy, a tax on electronic financial transactions.
In order to encourage people to use electronic channels for payment, Dr. Mahamudu Bawumia promised to repeal the e-levy and four other levies.
Professor John Gatsi responded to the flagbearer’s request by stating that it would be difficult to implement because the government had imposed the tax in order to raise money in order to meet the IMF’s conditions for granting an extended credit facility.
Prof. Gatsi says it will be challenging for Bawumia to drop the e-levy if elected presiden. According to Professor Gatsi, the plan is only a political ploy to help Dr. Bawumia become a more palatable candidate for the 2018 elections.
He said that when elected president, the NPP’s flagbearer will not be able to do it.
“I believe that all these discussions are going to be centered on 2025, and it is just a political strategy to make Bawumia look good for the election because you have already created a revenue stream for this government, and the IMF program will not end in 2025. So, to say, you need the same level of revenue to sustain the program. I don’t understand how you will be able to take one revenue source from the kitty and remain sustainable in the eyes of the IMF.”
“What Bawumia should be saying is that he will propose taxes A or B to replace the e-levy. If that is not what he is saying, then it is not something he can do, especially under the IMF programme.”
