Keep collecting the E-Levy for two years and put the money in a fund to support SMES- GUTA

The President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, has urged President John Dramani Mahama to reconsider his decision to abolish the Electronic Transaction Levy (E-Levy).

“I would suggest that, if possible, the government should not abolish the E-Levy,” he said.

He explained that the proceeds from the tax should be used to support Ghanaian traders, particularly small and medium-sized enterprises (SMEs) including the President’s proposed Women’s Development Bank.

“We can use the proceeds from the E-Levy to provide access to finance for SMEs and for the women that the President is so concerned about.”

Before winning the 2024 election, President Mahama promised to abolish the E-Levy, which was introduced by the Akufo-Addo government. In his campaign to empower SMEs, he also promised to establish a Women’s Development Bank—a financial institution that would offer loans to women at low interest rates.

Dr Obeng argued that the President would need money to establish the bank and suggested that the E-Levy could serve as a potential source of revenue to support this initiative and help various SMEs.

“This is my view, and I am expressing it because if we want to raise funds to support the informal sector, SMEs, and women, we must also think about how to generate this money.”

He added, “I have already said that we should rationalise taxes, and if there is one tax I would recommend maintaining, it should be the E-Levy. It is not only businesses that pay this tax—it is paid by all of us. Moreover, it is an existing tax that is already in place and is ongoing.”

Dr Obeng was speaking on Wednesday, January 8.

The E-Levy, introduced by the previous New Patriotic Party (NPP) government, was designed to broaden the country’s tax base and generate revenue for national development.

However, the tax has faced significant criticism from many Ghanaians. In response to the backlash, the government reduced the initial 1.5% charge to 1%.

Meanwhile, the Special Aide to the new President, Joyce Bawah, reassured the public earlier on Joy news hat the new government would abolish the E-Levy, as well as the COVID-19 levy.