E-Levy: You want accelerated dev’t and envy a high-growing economy, yet don’t want to pay taxes – Akufo-Addo

President Akufo-Addo has chided Ghanaians for clamouring for accelerated development while being opposed to taxation.

The advocacy for the payment of taxes follows moves by the government to get Parliament to approve the controversial Electronic Transfer Levy (E-Levy) bill.

The E-Levy seeks to impose a 1.75% levy on transactions, including Mobile money transfers done between accounts on the same Electronic Money Issuers (EMI), Mobile money transfers from accounts on one EMI to a recipient on another EMI, Transfers from bank accounts to mobile money accounts (either directly, GIP debit, bank cards or another scheme), Transfers from mobile money accounts to bank accounts (either directly, GIP debit, bank cards or another scheme) and Bank transfers originating from a bank account belonging to an individual.

But its introduction has met stiff opposition from well-meaning Ghanaians including the NDC who argue it will further compound the hardships of the ordinary Ghanaian.

The government has however assured that a revised bill will be relaid in Parliament after its townhall meeting which is explaining to the general populace the rationale behind the introduction of the levy.

Speaking at the 65th Independence Day Anniversary and march past held in Cape Coast, Central Region, the President outlined the benefits of taxation saying it holds the prospect of reducing the country’s dependence on foreign aid.

“There is one matter of overriding significance, which we can no longer ignore: that is the pressing need to increase, drastically, our domestic resource mobilization and reduce and eliminate our dependence on foreign savings. However, not everyone is ready to take the next step to the recognition that accelerated national development can best take place with a considerable increase in revenue mobilization.”

“And very few will then take the next further step to accept that revenue mobilization will happen principally through taxation in our society.  We have, unfortunately, not yet reached the stage of universal acceptance of taxation as a matter of public good,” the President said.

Using the examples of the four high-growing economies of Hong Kong, Taiwan, Singapore and South Korea to buttress his claims that development is financed through taxation, President Akufo-Addo decried the lesser numbers of Ghanaian paying taxes in the country.

“Less than 10 per cent of the Ghanaian population, i.e., 2.4 million people, carry the direct tax burden of 30.8 million people. The Asian Tigers, who we envy and want to emulate, financed their rapid development from their own savings.”

He indicated that “Ghana’s tax-to-GDP ratio of 12.2 per cent compares unfavourably with our peers the world over.”

Source: thenewsroomonline