E-levy: Mahama has no option but to remove it due to campaign pledge although… – Adei

President-elect John Dramani Mahama has no option but to remove all the taxes he promised to abolish including the E-levy, an economist, Professor Stephen Adei has said.

Prof Adei said that although he wants the e-levy kept, Mr Mahama is mandated to fulfil his campaign pledge to the people, therefore, he is expected to remove it.

Speaking on the Hot Issues on TV3 on Sunday, December 22, the former Rector of the Ghana Institute of Management and Public Administration (GIMPA) said “There should be a total tax review. There are too many taxes. For example, I imported something and I saw about 21 taxes on our car import, that is ridiculous. So we need a total look at the taxes but in looking at it, look at ones which are easier to collect, which is more widespread so that the tax base will be very narrow.
“There are only about one million income taxpayers in Ghana out of 33 million people of which half are adults. That is why the e-levy, if it can be reduced, should be kept, then you must go for property taxes because you cannot put your house in your pocket. You must cut funding for local government, for example in Accra they should be able to collect property rates. ”

He added  “They must carefully consider their promises, such as the taxes he is going to waive. I would not have even promised to remove e-levy because one of the very difficult things to do in a country like ours is getting people to comply with tax payments.

“In tax administration, if it costs more to collect money than what you are going to get, you better forget it. As for E-levy, I would rather want to reduce some other taxes and keep e-levy. Because you must reduce taxes which are difficult to collect and keep ones which are easier.

“At this point, they have no option but to remove e-levy because they made a promise but in recrafting it they must find a way of reducing the multiplicity of the taxes.”

It is recalled that ahead of the 2024 general elections, National Democratic Congress (NDC) candidate John Dramani Mahama promised to scrap several taxes within his first 100 days in office, arguing that these taxes burdened Ghanaians.

The taxes he promised to remove  included the e-levy, COVID levy, 10% levy on betting, emissions levy, and import duty on vehicles and equipment imported for industrial and agricultural purposes

Regarding the Betting tax, Prof Adei says he wants it increased from the current 10% to 50%.

“As a father, as a Christian leader we call it sin tax, sin taxes must be higher, not reduced. everywhere in the world, cigarette taxes, alcoholic taxes betting taxes, I will want them to be 50%. Because I don’t want my grandchildren to be betting betting is one of the disastrous habits that we should discourage,” he said.

He further noted that one of the downfalls of President Akufo-Addo was his inability to manage expectations.

Prof Adei explained that expectations management is very important in running the affairs of any organisation and a country.

He said this should be a warning sign to the president-elect John Dramani Mahama to manage the expectations of Ghanaians well.

Prof Adei said “I think that one of the downfalls of Akufo-Addo was his inability to manage expectations because what he promised that he would do he talked about Ghana getting to a point where we don’t need aid, now we are begging for money. So, expectation management is very important in running your home, your organisation, and running a country. So the first thing I will advise [John Mahama] is to manage expectations.”

“The second thing is that things should be done with the Ghanaian involvement, he has already said there will be a forum to discuss free SHS. So, it must be seen that you are engaging the people.

 

 

 

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