Will The E-Levy Follow In The Footsteps Of The Luxury Vehicle Tax?

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Ghanaians are in agreement that times are difficult. This trite opinion is the result of a mix of causes. They include, but are not limited to, the effects of Covid-19, the nation’s growing and intractable unemployment problem, corruption, incompetence, and opulence on the part of our leaders, and so on.

As the year draws to a close and the budget for 2022 takes effect, the future year may present even greater issues.

The government has already estimated to raise around 7 billion Ghana Cedis from the E-Levy. These are monies in the wallet of Ghanaians who are rational human beings.

In 2018, the government introduced the Luxury Vehicle Levy to impose an annual levy on vehicles with high engine capacities. Vehicles with an engine capacity of 2950 to 3549 cubic centimetres were required to pay GH1,000, while those with engines between 3,550 and 4049 cubic centimeters were required to pay GH1,500 to renew their roadworthy certificates annually.

The government had to beat a retreat a year later because the tax failed to meet the target set. It is the same approach with the E-Levy, despite the calls for the government to look elsewhere, it is still hell-bent on going ahead with it.

They should not be deceived that, even if members of the National Democratic Congress (NDC) decided not to patronize mobile money, members of the governing will do so, as we said earlier, customers are rational actors.

We admit that the government needs to shore up its revenue base. This newspaper, however, frowns at the idea of burdening the masses who are groaning under excruciating economic conditions with more taxes.

In the considered opinion of this newspaper, leakages have contributed significantly to the low revenue base of the country.

Instead of putting more burden on the already stressed citizenry, the government should find ways of blocking leakages and corruption.

The tax authorities should also look for other creative ways of improving revenue other than the dilatory approach of increasing or adding more taxes.

It is from this perspective that we call on the government to shelve the idea of the MoMo levy, till the time the economy improves significantly.

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