Vice President and Flagbearer of the NPP Dr. Mahamudu Bawumia has promised to eliminate the contentious electronic transaction levy, known as the E-Levy, if elected into power.
Addressing Ghanaians on Wednesday, the New Patriotic Party’s presidential candidate articulated his vision to transform Ghana into a cashless economy, citing economic growth and anti-corruption efforts as key motivators.
Dr. Bawumia emphasized the need to incentivize the use of electronic payment channels to realize this goal. “To achieve this, there will be no taxes on digital payments under my administration. The e-levy will therefore be abolished,” he declared.
The E-Levy, implemented on Sunday, May 1, 2022, imposes a 1.5% levy on various electronic transactions, including mobile money payments, bank transfers, merchant payments, and inward remittances, with exemptions for transactions up to GH¢100 per day.
While the government touted it as a means to expand the tax base and generate revenue for development, Dr. Bawumia underscored the imperative of transitioning towards a cashless society to enhance transparency and combat corruption.
Highlighting the advantages of cashless economies, Dr. Bawumia pointed to increased traceability and reduced corruption facilitated by electronic payments.
He lauded the strides made by the Bank of Ghana in laying the groundwork for this transformation, including initiatives such as mobile money interoperability, merchant interoperability, Universal QR Code payment systems, and the upcoming launch of the digital version of the Ghana cedi, known as the e-cedi.
Dr. Bawumia expressed confidence that the e-cedi, bolstered by robust privacy safeguards, would revolutionize Ghana’s fight against corruption by enhancing transparency, minimizing fraud and tax evasion, and facilitating the tracking of financial activities.
He envisioned the e-cedi as a pivotal tool in accelerating Ghana’s journey towards a cashless or near-cashless society.
Meanwhile, Ghanaians are left in dismay and questioning the inspiration behind Dr. Bawumia’s decision having led the charge to introduce the controversial tax.
