Bawumia's promise to abolish E-Levy feasible - Economist

Economist Dr. Owusu Adu Sarkodie has lauded Dr. Mahamudu Bawumia, the NPP flagbearer, for his proposal to scrap some taxes if he wins the presidential election.

Dr. Bawumia announced this plan, among others, in his vision statement delivered in Accra on February 7, saying that he would abolish the E-Levy, emissions tax, VAT on electricity, and the betting tax.

Speaking on Citi TV's Big Issue program on Saturday February 10, Dr. Adu-Sarkodie said that Dr. Bawumia's plan was realistic and responsive to the needs of Ghanaians.

He recalled that the NPP government had previously abolished taxes in 2017 when they came to power.

Dr. Adu-Sarkodie stressed the need to have a contingency plan to avoid revenue shortfalls, which he said was missing in the previous tax abolition.

"They have done something like this before. In 2017 when they came, we were still under an IMF programme and they abolished many taxes. But what we didn't see in that budget was a contingency plan to ensure that the government doesn't lose revenue.

...So I think they may have learnt from their mistakes and that they must have a contingency plan even if they abolish the taxes so that we can generate enough revenue."

"So yes it is feasible. It shows that they have listened to Ghanaians. I heard the GUTA president and he was very happy about the speech because he said that these are the things they have been asking the government to do for them. So I was also happy that Dr Bawumia listened to many Ghanaians who wanted the E-levy to be abolished."

Meanwhile, the government has officially suspended the implementation of the 15% VAT on domestic electricity consumption.

The Ministry of Finance instructed the ECG and the NEDCO to pause implementation of the levy

The suspension was meant to allow for more consultation and feedback from industry players and labor unions who were worried about the effect of the levy on consumers and businesses.

ID/MA

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