Ghana Union of Traders Association (GUTA), led by its president Dr Joseph Obeng, has urged the Mahama government not to proceed with its campaign promise to abolish the Electronic Transaction Levy (E-Levy).
Dr Joseph Obeng noted “I would suggest that, if possible, the government should not abolish the E-Levy,”.
“We can use the proceeds from the E-Levy to provide access to finance for SMEs and for the women development Bank that the President promised to set up
President Mahama promised to abolish the E-Levy, which was introduced by the Akufo-Addo government. In his campaign to empower SMEs, he also promised to establish a Women’s Development Bank to offer loans to women at low interest rates.
Dr Obeng speaking on JoyNews’ Newsdesk on Wednesday, January 8, argued that the President would need money to establish the bank and suggested that the E-Levy could serve as a potential source of revenue to support this initiative and help various SMEs.
He suggested that the proceeds from the tax should be used to support Ghanaian traders, particularly small and medium-sized enterprises (SMEs) including the President’s proposed Women’s Development Bank.
He added, “I have already said that we should rationalise taxes, and if there is one tax I would recommend maintaining, it should be the E-Levy. It is not only businesses that pay this tax—it is paid by all of us. Moreover, it is an existing tax that is already in place and is ongoing.”
The E-Levy, introduced by the previous New Patriotic Party (NPP) government, was designed to broaden the country’s tax base and generate revenue for national development.
However, the tax has faced significant criticism from many Ghanaians. In response to the backlash, the government reduced the initial 1.5% charge to 1%.
