A Professor of Finance at the University of Ghana, Godfred Bokpin, has asked government to rescind its decision to implement taxes on mobile money and other electronic transactions.

Speaking on the Super Morning Show on Thursday, November 18, 2021, the Professor described the move as unproductive, adding that the tax will further marginalise the poor.

"E-levy is the wrong way to go. Government should just abolish it before they even start implementing it. It is counterproductive, it's a lazy way of raising revenue.

"Because the existing tax handles that require work, coupled with integrity and ethical values, have failed, we are adopting this indirect way that imposes a greater cost on the poor and maginalised and the socially excluded to fill up the revenue gap," he said.

This follows government's decision to impose a 1.75% tax on all electronic transactions including mobile money and bank transactions which shall be borne by the sender except inward remittances, which will be borne by the recipient.

The decision has been greeted with great resistance by the Minority in Parliament who insists it will be inimical to the pursuit of the digital economy agenda.

According to Ranking Member on Parliament's Finance Committee, Casiel Ato Forson the move is counter-productive to plans aimed at making the Ghanaian economy cashless, adding that Ghanaians would be compelled to carry out transactions using physical cash.

Adding his voice to the conversation, Prof. Bopkin shared a similar view. According to the Professor, the decision defeats the purpose of government's digitisation agenda.

"In Ghana, we have embraced digitisation, a bit late though, but it's good. So if you're imposing a tax along that line what's the motive; to promote it in line with the general trend or to hold it back? You don't do this at this stage of your digitalisation.

"We are saying that we want to use Momo in paying taxes and all of that, then you slump this tax on it. Will it drive people underground? How will this inure to the financial inclusion agenda of the government? How will this lend support to the government's own digitilisation agenda? So you don't impose some kind of inhibitions that will cause people to explore other alternatives," he said.

He further noted that considering the impact of Covid-19 and the fact that the pandemic has fast-tracked the 4th industrial revolution, it is important to put in measures that will promote the digitisation drive, rather than those that will impede it.

"The future is digitisation and digitilisation. It is expected that that is the channel through which greater jobs will be created going forward. In fact, studies have shown that by 2022, 50% of the global GDP would have been digitised. Studies have shown that the digitised economy is expected to grow faster than the traditional economy. So you don't impose some kind of inhibitions that will cause people to explore other alternatives," he added.

Meanwhile, government still stands by its decision. Deputy Finance Minister, John Ampontuah Kumah, who was also on the show justified the decision, insisting that government needs to explore alternates to raise funds for development.