Ghanaian Happy with the Parliament Abolishment of E-Levy
In a landmark decision, the Parliament of Ghana has officially abolished the controversial Electronic Transaction Levy (E-Levy), a move that has been met with widespread approval from various sectors of the Ghanaian populace. In an exclusive interview with the Ghanaian Democrat, citizens expressed their relief and optimism regarding the implications of this legislative change for their businesses and overall economic landscape.
The E-Levy, introduced in May 2022, imposed a 1.5% tax on electronic money transfers and mobile money transactions, which many Ghanaians viewed as an additional burden on their already strained finances Small business owners, in particular, voiced their concerns about the adverse effects of the levy on their operations. Many reported a significant decline in transaction volumes, as customers became hesitant to engage in electronic transfers, fearing the additional charges. This hesitation was particularly pronounced among low-income earners, who rely heavily on mobile money for daily transactions.
Local entrepreneur Kwame Asante, who runs a small retail shop in Accra, shared his experience: “The E-Levy was a major setback for my business. Many of my customers preferred to buy in cash rather than incur the extra charges on electronic payments. This not only reduced my sales but also affected my ability to restock inventory.” Asante noted that the abolition of the levy would likely encourage more customers to return to electronic transactions, thereby boosting his business and helping him to streamline operations.
The general sentiment among Ghanaians is that the E-Levy stifled innovation and entrepreneurship. Tech startups, which heavily depend on digital transactions, faced an uphill battle as consumer confidence waned. Many startups reported difficulties in attracting and retaining customers due to the added costs associated with electronic payments. A tech entrepreneur, Sarah Owusu, explained, “When the E-Levy was introduced, it felt like a punishment for embracing technology. We were trying to promote cashless transactions, but the levy made people wary of using mobile money. Now that it’s gone, I believe we can regain that momentum.”
Moreover, the abolition of the E-Levy is expected to have far-reaching implications for the broader economy. Economists point out that the move could lead to increased investment in digital financial services, which are crucial for economic growth and financial inclusion. With a more favourable regulatory environment, businesses can innovate and offer new services, ultimately contributing to job creation and economic resilience.
In addition to the positive business implications, the general public expressed relief over the financial burden that the E-Levy imposed. Many Ghanaians, especially those in lower-income brackets, felt that the levy disproportionately affected them. During the interview with the Ghanaian Democrat, several citizens shared their stories of how the levy impacted their everyday lives. “Every time I sent money to my family in the village, I had to think twice because of the extra charges. Now, I can send money without worrying about the cost,” said Ama Mensah, a university student.
Political analysts also weighed in on the significance of this legislative change. They argue that the abolition of the E-Levy could signal a shift in the government’s approach to taxation, particularly concerning digital and electronic services. This decision may also reflect a growing recognition of the importance of supporting the digital economy in a post-pandemic world.
As Ghanaians celebrate this development, there is a collective hope that the government will continue to engage with citizens and stakeholders to create policies that foster economic growth while ensuring fairness and accessibility. The success of this abolition will depend on the government’s ability to implement alternative revenue-generating strategies that do not burden the average citizen.
In conclusion, the Parliament’s decision to abolish the E-Levy marks a significant turning point for Ghana’s economy. The overwhelming approval from the public reflects a desire for policies that prioritize economic growth and inclusivity. As businesses and individuals alike prepare to embrace a more favourable economic environment, there is optimism that this legislative change will pave the way for a more vibrant and resilient digital economy in Ghana. The future looks promising, and many are eager to see the positive impact this decision will have on their businesses and lives.
By: Idris Ibn Mohammed
