In a bold declaration, Vice President Dr. Mahamudu Bawumia has vowed to abolish the contentious electronic financial transaction tax, known as the e-levy, if elected President of Ghana. This announcement comes as part of his broader vision outlined during his first major address since becoming the flagbearer of the New Patriotic Party (NPP).
Since its introduction in 2022, the e-levy has sparked heated debate and opposition. Prior to its implementation, Dr. Bawumia had voiced his disapproval of levies on electronic financial transactions in an interview. Now, reaffirming his stance, he asserts that under his presidency, taxes on digital payments will be eliminated to encourage the populace to embrace electronic channels for transactions, advancing towards a cashless economy.
Speaking at the UPSA auditorium on February 7, Dr. Bawumia emphasized that the abolition of the e-levy would significantly bolster his vision for a Digital and Cashless Ghana. Additionally, he unveiled plans for a new tax regime aimed at easing the burden on individuals and businesses, particularly small and medium-scale enterprises (SMEs).
As part of this tax overhaul, Dr. Bawumia pledged to abolish the emission tax, tax on betting, and the proposed 15% VAT on electricity tariffs, if in effect by January 2025. Furthermore, he proposed the introduction of a flat tax regime, characterized by simplicity and citizen-friendliness. This regime would entail a flat tax percentage on income for both individuals and SMEs, with exemption thresholds designed to safeguard the interests of the less privileged.
With these promises, Dr. Bawumia aims to usher in an era of economic reform and prosperity, fostering an environment conducive to growth and innovation