The Electronic Transaction Levy (E-Levy), a tax on electronic transactions in Ghana, has been a subject of significant controversy since its implementation. Joyce Bawah Mogtari, Special Aide to President John Dramani Mahama, has strongly condemned the levy, highlighting its negative impact on the financial well-being of Ghanaians and pledging its abolishment. The levy, introduced by the previous administration, has been criticized for adding an additional financial burden to citizens, particularly those who rely heavily on mobile money platforms for their daily transactions. Moghi’s criticism underscores the Mahama administration’s commitment to reversing the policy, a key promise during the 2024 election campaign.
The E-Levy’s introduction coincided with a period of instability within Ghana’s banking sector, with several banks collapsing. This further amplified the reliance of ordinary Ghanaians on mobile money platforms, making them even more vulnerable to the levy’s impact. Moghi argues that the E-Levy effectively penalizes the very citizens who have been forced to adopt mobile money due to the banking sector’s challenges. This, she asserts, is not only unjust but also counterproductive to financial inclusion and economic growth. The levy, in her view, disrupts the flow of transactions and adds unnecessary complexity to an already fragile financial system.
Furthermore, Mogtari points to the unfulfilled promises associated with the E-Levy’s revenue. The government had justified the levy by claiming it would fund crucial national projects, including the ambitious Agenda 111 hospital construction initiative. However, the slow progress and eventual stalling of these projects have raised questions about the effective utilization of the funds generated. Moghi’s criticism implies a lack of transparency and accountability in the management of E-Levy revenues, further fueling the call for its abolishment.
The E-Levy, Mogtari contends, has also negatively impacted the operations of development partners who often utilize mobile money platforms for distributing aid and resources. The levy has introduced bureaucratic hurdles and additional costs, disrupting established processes and hindering the efficient delivery of assistance to vulnerable populations. This, she argues, undermines the effectiveness of development programs and adds unnecessary strain on an already complex aid distribution system.
The promise to abolish the E-Levy played a significant role in Mahama’s successful election campaign. Many Ghanaians saw the levy as an unfair and burdensome tax, particularly given the prevailing economic challenges. Mahama’s commitment to scrapping the levy resonated with the electorate, contributing to his victory at the polls. Now, with his return to the presidency, there is a strong expectation that he will fulfill this promise.
The abolishment of the E-Levy is expected to bring significant relief to millions of Ghanaians who rely on mobile money services. It is also anticipated to simplify financial transactions, reduce the burden on businesses, and restore confidence in the mobile money ecosystem. The move is seen as a crucial step towards fostering financial inclusion and promoting economic growth in Ghana. Furthermore, it signifies the Mahama administration’s commitment to addressing the concerns of ordinary citizens and building a more equitable and prosperous society. The repeal of the E-Levy is likely to be viewed as a significant policy victory for the new administration and a testament to the power of public advocacy against unpopular policies.
