Dr. Mahamudu Bawumia, the Vice President, has firmly declared his intention to eliminate the electronic financial transactions tax, known as the e-levy, should he become President of Ghana.
The contentious tax was implemented in 2022, and prior to its introduction, Vice President Bawumia had expressed his disapproval of levies on electronic financial transactions during an interview.
Delivering his first major address to the nation after he was elected NPP flagbearer, during which he gave broad policy outlines of a Bawumia Presidency, Dr. Bawumia minced no words in declaring his opposition to taxes on electronic financial transactions, declaring that he would abolish e-levy as President.
Dr Bawumia added that his bid for a Digital and Cashless Ghana will be significantly boosted if e-levy is abolished.
“To move towards a cashless economy, however, we have to encourage the population to use electronic channels of payment. To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will, therefore, be abolished,” he declared.
Dr Bawumia also announced that as part of a new tax regime by his government, he will also abolish the emission tax, tax on betting as well as the proposed 15% VAT on electricity tariffs, if it is in existence by January 2025.
He also announced that his government would introduce what he described as a friendly, flat tax regime for Ghana, which will boost individuals and businesses, particularly small and medium-scale enterprises (SMEs).
“My administration will introduce a very simple, citizen and business-friendly flat tax regime.
A flat tax of a % of income for individuals and SMEs, which constitute 98% of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor,” Dr Bawumia indicated.