The Director of the Institute of Statistical, Social, and Economic Research (ISSER), says there is a significant 58% deviation from the Electronic Transfer Levy (E-Levy) revenue targets during a pre-budget conversation on Joy FM's Super Morning Show.
Prof Peter Quartey's revelation follows ISSER's recent report on the Ghanaian economy, released on October 31, 2023, which delved into the effectiveness of the E-levy, sparking crucial questions about the optimal rate for this digital tax.
The report highlights that the reduction of the E-levy rate from 1.5% to 1.0% in January 2023 initially led to a decline in alternate payment systems' usage.
However, the figures sharply rebounded in February 2023, indicating a potential short-lived impact of the rate adjustment.
The report raises concerns about whether the current E-levy rate is optimal, considering the fluctuating patterns in alternate payment systems.
Notably, the ISSER report goes beyond Ghana, offering a broader perspective on tax policies. It underscores that in various countries examined, anticipated revenues from taxes failed to materialize, emphasizing the importance of tax rate optimization.
The report serves as a critical resource for policymakers, urging a reconsideration of the E-levy rate to strike a balance between revenue generation and maintaining consumer engagement in taxable transactions.
Professor Quartey concluded the discussion by expressing discomfort with the lack of real-time data, hindering academics' ability to make informed suggestions for effective policy implementation.
This underscores the challenges faced in navigating the evolving landscape of digital taxation and the pressing need for timely and accurate data to inform policy decisions.
Latest Stories
-
Elevating Ghana’s creative industry: A blueprint for competing with Nigeria and South Africa
1 hour -
Poor finishing a problem for Asante Kotoko throughout the season – Prosper Ogum
1 hour -
Samini teams up with Francis Osei for ‘Sticks N Locks’ EP
1 hour -
Government should resource record labels – Seven Xavier
2 hours -
I need majority in parliament to successfully complete my term – Akufo-Addo pleads
2 hours -
Next NDC government will not recognise illegal contracts signed by current administration – Sammy Gyamfi
2 hours -
Premier League clubs vote in favour of spending cap plans
2 hours -
Nigeria’s fuel crisis brings businesses to a halt
2 hours -
King Promise impresses fans at sold out show in Singapore
2 hours -
Ejisu by-election to proceed after plaintiff withdraws injunction application
2 hours -
CSOs and NGOs unite to push for priority demands at INC-4
3 hours -
Fuel tanker bursts into flames on Kumasi-Accra highway
3 hours -
EC’s stolen BVR kits, laptops: One granted bail, three still on remand
3 hours -
2 Things: Sista Afia releases first song off her upcoming album
3 hours -
GHS to embark on COVID-19 vaccination campaign starting May 4
3 hours