E-Levy: 43.8% of Ghanaians revert to using cash; 20.7% exploring loopholes in system – Study

A study on the impact of the electronic transaction levy on electronic transfers 45 days after the implementation of the levy has revealed some interesting findings.

Possibly the first empirical study of the impact of E-Levy on Ghanaians after its implementation, the study by Think Tank, IMANI Ghana reveals close to 43.8% of Ghanaians have reverted to using cash in undertaking transactions, retrogressing the government’s cash lite economy agenda.

Per the study, another 20.7% of the Ghanaian populace, are exploring loopholes in the implementation of the levy by collaborating with mobile money vendors.

A further 18.1% of the population are using mainstream banks to undertake transactions all in the bid to avoid the E-Levy charge.

Additionally, a whooping 69% of the Ghanaian populace when undertaking digital transactions, spread the amounts across days making small payments [less than GHS 100] in order to escape the E-Levy charge.

Delivering a presentation on the findings of the study, King Carl Duho, a research consultant with IMANI Ghana, averred the use of cash, banks, loopholes in the E-Levy tax system and spreading of amounts across days were all coping strategies being employed by Ghanaians following the implementation of the controversial levy.

Speaking further during the presentation, Mr Duho noted volume in digital transactions had reduced by some 83% since the introduction and subsequent implementation of the levy – this is evidenced by the GHS 10bn drop in mobile money value reported by the Bank of Ghana.

Asserting that, actual attrition rate following the implementation of the E-Levy is likely to be higher than the 24% projected by the government.

Adding government is also unlikely to meet its revised revenue target of GHS 4.5bn from the E-Levy tax.

According to IMANI Ghana, the study is to obtain the perspectives of Ghanaians on the introduction of the E-Levy, ascertain the impact of the E-Levy on the use of digital financial services in Ghana as well as the coping strategies used by Ghanaians in using digital financial services after the implementation of the E-Levy.