Majority of Ghanaians do not like E-levy – New report suggests

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A new survey conducted attests that the majority of Ghanaians (3/4) vehemently oppose the Electronic Transfer Levy, popularly called e-levy.

In a new Afrobarometer report, respondents to the survey believe taxing their own money after other numerous taxes they pay is not only a bad idea but thievery.

Others also do not trust that the government will use the revenues generated to fund developmental projects as espoused by the government.

The study also shows that a majority of Ghanaians believe there are several important goals that a tax revenue system must achieve, including ensuring that people understand the taxes they owe, reducing the tax burden, using tax revenues more effectively, and ensuring that citizens and businesses pay taxes.

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Here’s a summary of the survey;

  • Three-fourths of Ghanaians disapprove of the e-levy, including 67% who “strongly disapprove” of it (Figure 1). Only two in 10 (19%) endorse the new tax.
  • A similar proportion (76%) think the e-levy is a bad idea because it will increase the tax burden on the poor and ordinary citizens (Figure 2). This includes 63% who “strongly agree” with this view.
  • Three-quarters are also “not very confident” (24%) or “not at all confident” (51%) that the government will fulfill its pledge to use the revenues generated by the e-levy to fund development programmes.
  • Faced with the e-levy, Ghanaians are about evenly split as to whether they will continue to use electronic financial transactions (47%) or avoid using them (49%)
  • A majority of Ghanaians agree that there are several important goals that a tax revenue system must achieve, including ensuring that people understand the taxes they owe (82%), reducing the tax burden (81%), using tax revenues more effectively (83%), and ensuring that citizens and businesses pay taxes (79%).
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