Economist at the University of Ghana and the Institute of Statistical, Social and Economic Research, Professor Charles Ackah is making a case for government to consider a tax on digital commerce to replace the controversial Electronic Transaction Levy.

He argues that there are many businesses on digital channels that are not paying the right taxes as compared to the one’s paid by other enterprises in the country.

His comments follows the ongoing debate on the controversial E Levy which is facing some opposition from a section of the public.

He believes E-Levy is not a fair tax.

“When you look at the various tax classifications by the World Bank and International Monetary Fund, the E-Levy is not a fair tax because it doesn’t fall in the categories given by the institutions. And I must tell you that we can raise revenue through other means rather than this levy which has become like a MoMo tax.

He noted that there are many online businesses transacting that are not paying taxes.

“There are businesses doing online services that are not registered nor paying taxes, just because of their online presence. Initially I thought the E-Levy will tax such businesses rather and make them pay the right taxes to the state, but it turned out to be something else.”

“I suggested the Finance Minister [Ken Ofori-Atta]  that we should rather get a levy to target the e-commerce businesses, so that we can rake in some revenues” he concluded.