Ato Forson, the Finance Minister-Designate, has pledged to abolish the Electronic Transaction Levy (E-Levy) within 120 days if he is confirmed as the next Finance Minister of Ghana. Forson made this promise during his vetting by the Appointments Committee of Parliament, where he faced questions from lawmakers about his plans for the economy.
According to Forson, the E-Levy has failed to achieve its intended purpose of raising revenue for the government. He argued that the levy has instead imposed an additional burden on Ghanaians, who are already struggling with high inflation and economic hardship. Forson promised that if he is confirmed as Finance Minister, he will work to abolish the E-Levy within 120 days and replace it with a more progressive and equitable tax system.
Forson’s promise to abolish the E-Levy has been welcomed by many Ghanaians, who have been critical of the levy since its introduction. The levy, which was introduced in May 2022, imposes a 1.5% tax on electronic transactions, including mobile money transfers, bank transfers, and online payments. Many Ghanaians have complained that the levy is unfair and has increased the cost of living.
The E-Levy has also been criticized for its impact on small businesses and entrepreneurs, who rely heavily on electronic transactions to operate their businesses. Many have argued that the levy has reduced their profit margins and made it more difficult for them to compete with larger businesses.
Forson’s pledge to abolish the E-Levy is part of a broader promise to reform Ghana’s tax system and make it more progressive and equitable. He has promised to work with stakeholders to develop a new tax system that takes into account the needs and concerns of all Ghanaians.
The Appointments Committee of Parliament is expected to report on Forson’s nomination to the full House for approval. If confirmed, Forson will take over as Finance Minister and will be responsible for implementing the government’s economic policies, including the abolition of the E-Levy.
In a statement, the Minority in Parliament welcomed Forson’s pledge to abolish the E-Levy, describing it as a “positive step” towards reducing the burden on Ghanaians. However, they cautioned that the abolition of the E-Levy must be done in a way that does not compromise the government’s revenue streams.
The government has defended the E-Levy, arguing that it is necessary to raise revenue to fund development projects. However, many Ghanaians have questioned the government’s claims, arguing that the levy is unfair and has not been used to benefit the majority of Ghanaians.
As the debate over the E-Levy continues, Forson’s pledge to abolish it within 120 days has added a new dimension to the discussion. If confirmed as Finance Minister, Forson will face the challenge of implementing his promise and finding alternative revenue streams to fund the government’s development projects.
In the coming weeks and months, Ghanaians will be watching closely to see if Forson will be able to deliver on his promise to abolish the E-Levy. If he is successful, it could be a major boost to his popularity and the government’s credibility. However, if he fails, it could lead to widespread disappointment and criticism.
As the Finance Minister-Designate, Forson has a major challenge ahead of him. He must navigate the complex world of taxation and revenue generation, while also meeting the expectations of Ghanaians who are eager for change. If he is able to deliver on his promise to abolish the E-Levy, it could be a major step towards achieving his goal of creating a more progressive and equitable tax system.
Source:Africa Publicity
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