'You don’t need to be an economist to see E-Levy was poorly designed – Prof. Bokpin

Economics Professor Godfred Alufar Bokpin has criticized the Electronic Levy (E-Levy). He believes it was flawed from the beginning.

In his assessment, he stated that the tax was poorly structured. Even those without an economic background can see this.

"Everyone can agree this was poorly designed," he told Joy News' PM Express on March 27.

He noted that the E-Levy lacked proper scrutiny before implementation. This led to unintended consequences for citizens and businesses.

Professor Bokpin described Ghana’s tax policy environment as chaotic. Businesses must constantly adjust their systems to stay compliant.

“In the last two and a half years, you have to reconfigure your system every six months,” he said.

“The compliance costs for banks and companies are huge.”

He pointed out contradictions in taxing mobile money transactions. This is at odds with promoting a digital economy and financial inclusion.

“If you want a digital economy, don’t impose a tax on it,” he argued.

“Financial inclusion promotes growth, yet we placed a levy on it.”

According to Professor Bokpin, reviewing the E-Levy shows recognition of its failure.

“Ghana is waking up; I congratulate the government for this decision.”

He emphasized that it's about broader economic impact, not just personal transactions.

He described the levy’s effect on ordinary citizens as double taxation.

“You send money after paying taxes, then pay more tax? It’s backward.”

Beyond consumer costs, he questioned if the levy was rigorously evaluated by the Ministry of Finance.

“The actual revenue versus expected revenue shows poor policy filtering,” he explained.

“I’m not sure this went through critical analysis at all.”

With the government reconsidering its approach, Professor Bokpin sees lessons in this situation.

He predicts mobile money transactions will rise again after review. This could help rethink taxation without hindering economic growth.

“The good news is we will see Momo uptake again,” he said. “This promotes financial inclusion.”

His verdict on the E-Levy is clear: it was rushed and harmful overall.

“If driven by emotion, the results are evident.”