E-levy is a bad tax that should be removed with or without road toll – UGBS Professor

Professor Patrick Asuming, a senior lecturer at the University of Ghana Business School (UGBS) has called for the scrapping of the controversial electronic transaction levy (e-levy).

The economist argues it is a “bad tax” that should be removed whether or not the government succeeds in reintroducing road tolls.

Prof Asuming stated in an interview on Accra-based TV3’s Key Points program on Saturday that the 1% e-levy imposed on electronic financial transactions places an undue burden on citizens and should be eliminated.

“The e-levy is a bad tax that should be removed with or without the road tolls,” Asuming said.

“I am very suspicious that these road tolls will be back. In 2023 they stated that they were going to bring back some tolls that were removed but we didn’t hear anything about it. Now you are saying this,” he added.

The government ceased the collection of road tolls in 2021 as part of measures to ease traffic congestion and its impact on productivity.

However, Finance Minister Mohammed Amin Adam disclosed while reading the mid-year budget on Tuesday, July 23, that Cabinet has approved plans to reintroduce the tolls by 2025.

But Prof Asuming said he doubts the government’s real intention to bring back the road tolls.

“I am not sure there is a real intention to bring back the road tolls. It was a bad idea to remove the road tolls,” he stated.