Political Scientist Kwame Asah-Asante says a phased reduction of the Electronic Levy (E-Levy) would be a more feasible approach than its outright removal.

Speaking on JoyNews' AM Show on Friday, January 10, Dr Asante explained that while the E-Levy remains unpopular, its complete removal could harm the country’s financial stability.

According to him, rather than abolishing the E-Levy entirely, the government should focus on reducing the tax burden gradually. "The best approach is to reduce the incidence of taxation over time, as these are the low-hanging fruits that can be effectively utilised," he said.

While acknowledging the discomfort caused by the 1.5 per cent levy, he pointed out that it has become a vital source of revenue for the state.

“We have lived with this burden, and we are moving on,” Dr Asante remarked, noting that the country already bears several other taxes that place a strain on the public.

He suggested that a gradual reduction of the E-Levy would make it easier for more people to comply, which in turn would increase participation and government revenue.

Dr Asante also emphasised the importance of generating domestic resources for the country’s development. “You can never build the capacity of the state without generating your own resources,” he said.

He cautioned against relying too heavily on external funding, stressing the need for innovative solutions, such as increasing internally generated funds, to support long-term growth.