A Professor of Finance and Economics at the University of Ghana Business School (UGBS), Prof Godfred Bokpin, has expressed his approval of the government’s recent tax policy decisions, particularly the removal of the Electronic Levy (E-Levy).
He believes the move will significantly contribute to economic stimulation and digital growth in the country.
“First of all, I want to congratulate the government for fulfilling its promise. I couldn’t wait for the removal of E-Levy. I had even told someone to give me a few days, as I was waiting for its removal before sending mobile money,” Prof. Bokpin remarked in an interview on Joy FM’s Top Story on Wednesday evening, March 26.
According to him, eliminating the E-Levy would ease financial burdens on Ghanaians, foster a thriving digital economy, and create space for increased consumption and business expansion.
He said from the onset, he had never hidden his dissatisfaction with the E-Levy, arguing that it was one of the policies that led to economic hardships in the country.
However, Prof. Bokpin also expressed reservations about the government’s decision to abolish the betting tax. He noted that while some citizens were pleased with the decision, he believed that the tax had potential economic benefits, and its removal was not necessarily a positive step.
Additionally, he raised concerns about emissions taxation, pointing out that Ghana lacks the necessary infrastructure to properly measure emissions for tax purposes. He cited the Minister of Finance’s own admission that the country does not have the required charging agents or equipment to effectively implement the tax.
Regarding the Value Added Tax (VAT) structure, Prof. Bokpin highlighted the need for reforms, particularly the COVID-19 health levy, which he described as distorting the VAT system. He urged the government to work towards a fair and transparent tax structure by engaging with the International Monetary Fund (IMF) to resolve these complexities.
“My recommendation to the government is that when they streamline the VAT system and set a standard batch rate, it should not exceed 18%. Instead, the focus should be on administrative efficiency, compliance, and deploying revenue administration tools to close tax collection gaps,” he advised.
Source: Myjoyonline.com
