The E-levy and the unhealthy state of Ghana’s economy

The E-levy and the unhealthy state of Ghana’s economy. Is this there a mismatch ?… or a redemption in the air?… As the e-levy comes on board to save a sinking ship.

To many, the unhealthy state of the country’s economy leaves much to be desired in the light of the prevailing harsh economic reality, as the vast majority of Ghanaians are average income earners. We are now going to face the wrath of an infamous E-levy, which will further deplete the incomes of the ordinary Ghanaian and frustrate the free use of Mobile Money and other electronic transactions within the banking and financial sector.

That said, it seems the economy is in straitjackets and shrinking, with little growth being recorded over the past first quarter of the year.

Readily available economic indices and data from the central banks, financial market sources have projected further hardship due to the country’s slow post-covid-19 recovery as goods and services were at their all-time low ratings following land and border closure when the pandemic was at its peak.

External foreign influences and more so the inelastic nature of the country’s economy are the two main deciding factors for the poor growth as captured in the African journals 2022.

To ensure rapid growth is incumbent for the government to enhance and improve goods and service delivery, offer tax exemptions to small and medium enterprises which form a bulk of the informal sector of the economy, and at the same time reduce the taxes on fuel prices at the pumps and cutting down on government spending to support and stabilize the economy.

The government’s resolve to implement the E-levy and the start of it today 1st May 2022 shows that small businesses, ordinary people, and low-income earners who pay for services using Mobile Money Services will have to now pay extra for the transactions and payments they make to other small businesses in the country.

The E-levy according to the government will solve Ghana’s economic woes and deal with the busget deficit and help deal with the unhealthy state of Ghana’s economy however, the voice of the majority of Ghanaians kicked against the levy but to no avail.

READ: Electronic Transaction Levy: 1.5% E-Levy starts today

The listening government is clearly not listening. These aforementioned measures outlined would help bring some relief to the ordinary Ghanaians,  however, the introduction of the Electronic Transaction Levy will only worsen the current plight of the masses.

READ: Allow forensic audit of COVID-19 expenditure: Mahama dares Akufo-Addo

The government hopes and holds the view that the E-levy will be the cure to the ailing economy. If they fail to take care of the unhealthy state of Ghana’s economy using the E-levy, they will surely be in more trouble than they can imagine.

Source: Ghanaeducation.org| Jose Doughan