Mahama’s plan to abolish e-levy sends a strong signal to investors – Gatsi

Dean of the Business School at the University of Cape Coast, Professor John Gatsi has said the plan by the National Democratic Congress (NDC) to abolish the e-levy if the party wins the next election sends strong signal to investors both local and foreign.

Mr Mahama stated emphatically that a government of the NDC will cancel the e-levy.

“We in the NDC do not oppose taxation as a principle. We will not be pretentious and couch fanciful slogans to condemn the principle of taxation like the NPP did in the past. We are, however, implacably opposed to distortionary and burdensome taxes like the e-levy that only force Ghanaians to endure more suffering.

“A new National Democratic Congress Government, God willing and with the votes of the sovereign people of Ghana – in 2025 – will repeal the E-Levy Act,” he said while delivering an address titled “Ghana at Crossroad” on Monday May 2.

The controversial levy started on Sunday May 1 amidst public outcry.

The NDC heavily opposed the introduction of the levy.

In their view, it is punitive and amounts to double taxation. The bill was passed by Parliament on Tuesday March 29 after the Minority staged a walkout.

They walked out after their leader Haruna Iddrisu said the NDC MPs remained united in opposing the policy.

On Tuesday April 19 they filed an application at the Supreme Court to block the commencement of the e-levy deductions. Hearing of this application is expected to be heard on Wednesday May 4.

Speaking on the News 360 on TV3 Tuesday May 3, Prof Gatsi said “It is very clear that people are not comfortable with the principle behind e-levy. And, it is my belief that that principle has to be corrected. If there is the need to even take revenue from this space, the principle will has to be corrected.

“It is also very clear that as opposition party, you are able to point out your views and your policy orientation when it comes to specific matters. So I believe the NDC, through John Mahama, has been able to clearly indicate the policy stand on the e-levy.

“That sends so many signals. The first signal is that, it tells people that when things are enacted into law without following principle, we can, as a people, find a way through the lawmaking to deal with it, that through the lawmaking process, it will be repealed.

“Then it also sends the signal to investors interested in the bonds of Ghana. Because during the debate about the e-levy the Road Minister clearly indicated that they need the e-levy to collateralize to construct more roads. So, if we are going to collateralize the e-levy, then the signal to the investors that, the future revenue stream that is going to be collateralized may not be there.”

Source: 3news