Abolishment of E-Levy, other taxes: Experts suggest widening of tax net - Ghana Business News

Economic experts are urging the government to widen the tax net. This will help enhance revenue generation. They also recommend careful public spending to avoid misuse of funds.

These recommendations follow President John Dramani Mahama’s approval of several Bills. These include repealing the Electronic Transfer Levy (E-levy), Betting Tax, and Emissions Levy.

Mr. Jeffrey Kabutey Ocansey is the Executive Director of Revenue Mobilisation Africa. He spoke on an Accra-based television program on Saturday. He urged the government to invest in critical sectors like agriculture.

He emphasized addressing damage to farmlands caused by illegal mining activities. Mr. Ocansey also highlighted the importance of focusing on the night economy and informal sector. These areas contribute very little in taxes.

He recommended developing a strategic industrial path through skills training. This would boost local production and create jobs.

The government is introducing measures as part of its tax reform agenda. These aim to increase disposable incomes and lower overall tax burdens for citizens.

Removing the E-levy should lead to greater disposable income for households. It may stimulate digital transactions and encourage financial innovation, reducing business costs.

The repeal is expected to boost consumer spending and energize economic activity across sectors. It will also provide relief for companies affected by the levy.

Regarding the Income Tax (Amendment) Bill, 2025, certain withholding taxes will be removed. This aims to provide additional income for affected individuals.

Specifically, withdrawing withholding tax on unprocessed gold purchases could curb smuggling. This change would help Ghana benefit more from its mineral resources.

Mr. Wonder Madilo, a Development Consultant, discussed US tariffs on exports from Ghana. He called it a wake-up call for Ghana to develop home-grown solutions and cut unnecessary spending.

Mr. Madilo urged the government to focus on policies that promote economic growth and citizen well-being.

Finance Analyst Mr. Yaw Sompah cited data showing 92 percent of businesses operate in the informal sector. This poses challenges for effective tax collection in Ghana.

He encouraged leadership at the Ghana Revenue Authority to introduce innovative revenue strategies after repealing the E-levy.

As a Private Legal Practitioner, Mr. Sompah called for formalizing the informal sector through identification and categorization of groups within it.

He suggested licensing these groups for better regulation and monitoring compliance with tax obligations.

Additionally, he stressed that strict adherence to tax laws is essential to prevent multinational companies from evading taxes.