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Senior Development Economist at the University of Ghana, Dr. George Donfeh, has predicted the return of the Electronic Levy (E-Levy) in a different form despite its cancellation in the 2025 budget.
Speaking on Atinka 104.7 FM’s morning show, hosted by Akosua Agyeiwaa High Tension, Dr. Donfeh described the cancellation as a politically motivated decision that will ultimately hurt government revenue.
“I was against the cancellation of the E-Levy,” he stated.
“The government might have removed it for political reasons, but they will have no choice but to bring it back in another form. It was one of the most efficient and easily collected taxes.”
Comparing the E-Levy’s fate to the initial resistance against the introduction of VAT under the Rawlings administration, Dr. Donfeh noted that Ghana’s economic stability depended heavily on such revenue streams.
“I swear that the economy would have collapsed if VAT was not introduced,” he said.
“Now, history is repeating itself. The Ghana Revenue Authority (GRA) needed GH¢177.2 billion but raised GH¢223 billion, surpassing its target. These taxes contributed significantly to that success. Now that the E-Levy is gone, the government will struggle to meet its targets,” he stated.
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Dr. Donfeh criticized the Finance Minister’s approach to the 2025 budget, arguing that it focused too much on the country’s economic struggles rather than offering practical solutions.
“The Finance Minister came to meet a worse economy, yes, but the economy is simply about how you and I will have something to eat,” he remarked. Instead of finding ways to fix things, he only lamented about the challenges,” he added.
He also noted that previous tax policies angered many Ghanaians because new taxes were introduced without removing existing ones, placing an excessive burden on citizens.
Despite his concerns, Dr. Donfeh commended the government’s decision to prioritize the ‘Big Push’ initiative, which he believes could drive economic growth.
“Every government has its priorities. Expenditures and salaries are a challenge for every administration, but the allocation to the Big Push is a good move. It will create jobs and give the economy the push it needs,” he added.
As debates over the 2025 budget continue, Dr. Donfeh’s insights suggest that while some policies may offer relief to Ghanaians, others could resurface in new forms as the government seeks to balance revenue generation with political strategy.
Ghana|Atinkaonline.com|Ebenezer Madugu