Former Deputy Finance Minister, Dr. Alex Ampaabeng, has expressed his satisfaction with the abolition of the Electronic Transaction Levy (E-Levy), describing it as a distortionary tax that was not fit for purpose.
Speaking on Accra-based Channel One TV, Dr. Ampaabeng commended the move, which aligns with the campaign promise of the 2024 New Patriotic Party (NPP) presidential candidate, Dr. Mahamudu Bawumia, to scrap the levy. He criticized the E-Levy as a “money transportation tax” that imposed charges on financial transactions without adding economic value.
However, he acknowledged that removing the tax would create revenue gaps and urged the government to explore sustainable alternatives.
“We don’t have anything against the removal of the E-Levy. We are already in the financial year, and it was going to happen. This has been in their manifesto, and we also had it in ours. It is a distortionary tax, so I have no qualms about its removal. The real conversation should be about how to address the resulting revenue shortfall,” he noted.
Dr. Ampaabeng further proposed shifting towards e-commerce taxation as a more effective means of broadening the tax net.
“Electronic-based taxation or e-commerce taxation is the way forward. I hope this government or future administrations will consider taxing digital market players as part of electronic transfer taxes, but not in the form of the current E-Levy,” he suggested.
His remarks add to the ongoing debate on how best to structure the country’s tax system while ensuring sustainable revenue generation.
