Three reasons why E-levy was a miscalculation

1. Economic

First, governments introduce tax when peoples’ incomes are growing. Because incomes are growing, the new tax will not overburden the people.

In the case of E-levy, incomes were not growing, so it was not economically advisable to introduce such a tax.

Secondly, E-levy traps the poor in society, further stifling the already paltry income of poor people. The ¢100 threshold is too low for anyone to escape. In essence, even if a market woman is sending a ¢1,500 school fees to her son at the university, she will pay E-levy. Tax on school fees?

2. Political

The NPP campaigned in 2016 on abolishing nuisance taxes. Today, E-levy is here. Can someone explain? Is that not a U-turn?

E-levy is a political catastrophe for the NPP. It shouldn’t have been conceived in the first place.

3. Technological

E-levy defeats all of the government’s efforts to digitize the economy. E-levy is a major disincentive to digital growth.

Content created and supplied by: Baffour Awuah (via Opera
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