Ghana’s Finance Minister-designate, Dr. Cassiel Ato Forson, has pledged to eliminate the controversial Electronic Transaction Levy (E-Levy) within the first 120 days of President John Dramani Mahama’s administration. Speaking during his vetting before Parliament’s Appointments Committee on January 13, 2025, Dr. Forson reaffirmed his commitment to scrapping the levy, a move that has stirred nationwide debate.
Dr. Forson’s Stance on the E-Levy
Dr. Forson, a well-known critic of the E-Levy, has repeatedly called it harmful to Ghana’s cash-light economy goals and the growth of financial technology (FinTech). He criticized the levy as a misplaced fiscal policy, stating, “The E-Levy is not a direct tax, indirect tax, or even an excise tax.” While acknowledging its revenue potential, he argued that the tax is detrimental to economic growth and innovation.
Plan to Remove the E-Levy
If confirmed as Ghana’s Finance Minister, Dr. Forson promised to prioritize repealing the E-Levy in the Mahama administration’s first budget. “We are fully committed to our promise, and I assure Ghanaians that the E-Levy will be gone within the 120 days we have pledged,” he declared.
Criticism of Excessive Taxation
Dr. Forson also addressed the government’s heavy reliance on taxation as a primary revenue source. He criticized the lack of emphasis on expense management, stating, “Why is the focus always on generating revenue? We need to shift our attention to controlling expenses and improving fiscal discipline.”
Commitment to Protecting Vulnerable Populations
In addition to abolishing the E-Levy, Dr. Forson assured Ghanaians that his policies would prioritize protecting vulnerable groups. “We will not hurt the poor in society. Our focus will be on policies that foster economic growth while safeguarding the livelihoods of the most vulnerable,” he emphasized.
Public Reaction to the Promise
Dr. Forson’s vow to scrap the E-Levy has sparked mixed reactions. Supporters see it as a step toward reducing the financial burden on Ghanaians and promoting technological advancement. Critics, however, have raised concerns about the potential revenue gap and how the government will offset the loss.
Future of Ghana’s Tax Policies Under Mahama’s Leadership
As Ghana anticipates significant fiscal reforms, Dr. Forson’s bold stance against the E-Levy is set to play a critical role in shaping the Mahama administration’s economic policies. The decision to eliminate the levy reflects a broader focus on balancing revenue generation with sustainable economic growth and financial equity.
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