• Fri. Sep 30th, 2022

E-levy may not achieve its intended goal; instead, use current tax sources. – Economist

ByEditor

Apr 26, 2022 , ,

Instead than imposing new taxes, an economist at Kwame Nkrumah University of Science and Technology advises the government to fully utilize existing tax sources.

Professor Eric Oteng-Abayie points out that existing taxes have failed to generate the required income because successive administrations have failed to implement appropriate tax strategies.

He believes that the country has lost a significant amount of money as a result of the inconsistency in tax application over the years.

“If the government can generate permanent streams of revenue, such as income tax and property tax, which haven’t gotten much attention, and truly target the correct people who have to pay these taxes.”

“When the government repeals taxes that it has already enacted, it indicates that the government is not conducting thorough study into the areas that need to be taxed, which is problematic,” Prof. Oteng-Abayie explained.

Citizens, particularly academics, have reacted negatively to the government’s passage of the Electronic Transaction Levy of E-Levy bill into law.

Professor Eric Oteng-Abayie, speaking at a public discussion on the E-levy at KNUST, said the challenges surrounding the levy’s implementation will harm revenue collection.

The electronic transaction levy, he claims, is problematic because it lacks impartiality.

“It is believed that the target income will not be met due to revenue assurance concerns and delays in the e-levy rollout.”

“A decent tax policy should be neutral,” says the author. That is, it should not simply effect a specific group of people or business model, but should have a broad basis, similar to the VAT,” he explained.

The Faculty of Social Welfare at KNUST hosted a public forum with the theme “E-Levy and Its Implications: A Multidisciplinary Perspective.”

The e-levy may not achieve its intended goal; instead, use current tax sources. – Dr. Najim Ussiph, economist
Meanwhile, Dr. Najim Ussiph is pleading with the government to be transparent when the fee is enforced.

He alluded to previous instances in which Ghanaians were unaware of the amount of tax income collected annually.

“Because this levy will be administered digitally, the government may take advantage of technology to make the process more transparent.” “With the help of technology, the government can always report periodically on how much money has been gathered from various stakeholders and make it public,” he said.

Dr. Ussiph, on the other hand, does not agree with the government’s decision to outsource levy collection monitoring and assurance to a third party.

Such capabilities, he argues, might be developed internally.

“A third-party company will be recruited to monitor the collection,” the Finance Minister said, “but we might have used our local resources, such as fresh grads.”

“Rather of contracting with a third company, the government should have planned the e-levy implementation effectively by creating the capacity we need domestically,” he said.

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