Bawumia should be proposing new taxes to replace the ones he intends to scrap – Prof Gatsi

An economist and the Dean of the Cape Coast Business School, Professor John Gatsi, has said the promise by Vice President Dr. Mahamudu Bawumia to scrap the levy on electronic transactions is just a strategy to make Bawumia win the elections.

According to him, scrapping the levy which is already a revenue stream will be unsustainable under the current International Monetary Fund.

He explained that the IMF programme will not end in 2025, therefore, it will be impossible to scrap the levy.

“I believe that all these discussions are going to be centered on 2025, and it is just a political strategy to make Bawumia look good for the election because you have already created a revenue stream for this government, and the IMF program will not end in 2025. So, to say, you need the same level of revenue to sustain the program. I don’t understand how you will be able to take one revenue source from the kitty and remain sustainable in the eyes of the IMF,” he was quoted to have said by citinewsroom.com.

Instead, Prof. Gatsi said the flagbearer of the NPP should be proposing new taxes to replace the ones he intends to get rid of.

“What Bawumia should be saying is that he will propose taxes A or B to replace the e-levy. If that is not what he is saying, then it is not something he can do, especially under the IMF programme,” he said.

SSD/NOQ

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