Dr. Kwame Asah-Asante, a renowned Political Scientist, has advised President John Dramani Mahama to reconsider his promise to cancel the electronic levy (E-Levy).
Ahead of the 2024 elections, President Mahama had pledged to scrap the e-levy, which was introduced by the Akufo-Addo administration. The levy has faced widespread criticism from Ghanaians, who see it as a financial burden.
However, several stakeholders, including the Ghana Union of Traders Association (GUTA), have expressed opposition to its removal.
Speaking on Morning Starr with Naa Dedei Tettey, Dr. Asah-Asante argued that the e-levy could be an essential tool in raising revenue to stabilize the economy.
Dr. Asah-Asante emphasized the need for the government to explore alternative revenue streams, particularly given the current fuel shortages and economic challenges.
While acknowledging the concerns about the tax burden, Dr. Asah-Asante suggested that reducing the levy rather than abolishing it entirely could be a more pragmatic approach.
He stressed that it is essential for the State to generate revenue to run its affairs effectively.
Dr. Asah-Asante said, “We should be able to look at where we can raise money because now we are in shot supply of fuel, there are a lot of things that we need to commit ourselves to be doing, we need resources. So the government must find reasonable means to raise in the needed resources to drive home with its programme and policies and one place we can start from is the e-levy.”
“Even though government promised to remove it, I have a contrary view. I support the e-levy true and true in a sense that it is able to give us a lot of resources. If they thing that the tax burden is too much, then you can reduce it, but taking it off, I disagree vehemently. Because under the State capacity, the State is supposed to generate revenue and run its on affair with that revenue,” he added.
