E-Levy: Gov’t may not meet the expected target- Survey
A survey report released by IMANI Centre for Policy and Education in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) has revealed that the government may not meet its target of raising some ¢4.5 billion from Electronic Transaction Levy.
The report disclosed that this was because 83% of Ghanaians have reduced their mobile money transactions since the introduction of the levy.
“About 83% or 8 in ten respondents indicated that their volume of transactions has changed since the implementation of the e-levy in May 2022. Of this number, about 47% indicated that they had reduced the number of mobile money transactions by about 51% to 100%. Our findings suggest that the official 24% attrition rate, which the government estimates for the first three to six months following the introduction of the e-levy, is likely to be much higher.”
“This finding implies that the forecasted GH¢4.5 billion (GHS¢60 million per month) e-levy revenue target for 2022 is unlikely to be attained given the strong consumer backlash and people finding alternative means of undertaking financial transactions,” portions of the survey said.
The research, which interviewed 1,677 respondents across the country, was aimed at determining the impact of the e-levy on Ghanaians and the coping mechanisms Ghanaians had adopted since its passage in May this year.
Respondents said they had found alternative ways of avoiding the e-levy which included “carrying physical cash (43.8%), using the mainstream commercial banks (18.1%), and exploiting loopholes in the system by collaborating with mobile money vendors to allow cash out (20.7%).”
According to the majority of the respondents (opposed to the levy) the government could reduce its expenditure to raise more revenue.
“32% of those not supporting the e-levy indicated that the government could cut down on wasteful expenditures such as Land Cruiser V8 cars, allowances, conferences, and travel. It is apparent here that
many citizens (72.6%) feel that the government already collects enough taxes and should prudently manage the expenditure side of the equation.”