Prof. Bokpin commends gov't on tax policy reforms

Prof. Godfred Bokpin teaches Finance and Economics at the University of Ghana Business School (UGBS). He supports the government's recent tax policy changes, especially the removal of the Electronic Levy (E-Levy).

He believes this decision will boost economic growth and digital development in Ghana.

“I want to congratulate the government for keeping its promise. I was eager for the E-Levy's removal. I even told someone to wait a few days before sending mobile money,” Prof. Bokpin said on Joy FM's Top Story on March 26.

He thinks eliminating the E-Levy will reduce financial burdens on Ghanaians. It will also help create a thriving digital economy and encourage business growth.

Prof. Bokpin has always been critical of the E-Levy. He argues it contributed to economic hardships in Ghana.

However, he is concerned about abolishing the betting tax. While some citizens are happy with this change, he sees potential economic benefits from keeping it.

He also raised issues about emissions taxation in Ghana. The country lacks infrastructure to measure emissions properly for taxation purposes. The Minister of Finance admitted that necessary equipment is not available.

Regarding Value Added Tax (VAT), Prof. Bokpin called for reforms, especially concerning the COVID-19 health levy. He believes this levy distorts the VAT system.

He urged the government to create a fair and transparent tax structure by working with the International Monetary Fund (IMF).

“My recommendation is to streamline the VAT system,” he said. “The standard batch rate should not exceed 18%. Focus should be on efficiency, compliance, and improving tax collection.”