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| Prof. Peter Quartey, ISSER Director. |
The 1.5 percent Electronic Transaction Levy
(E-Levy) is considered punitive by the Institute for Statistical Social and
Economic Research (ISSER).
The research section of the University of Ghana
has consequently urged the government to explore a 0.5 per cent to 0.75 per
cent reduction in the rate of inflation.
Prof. Peter Quartey, the institute's director,
said that this would encourage more individuals to utilise the service, which
would in turn allow the government to gain the full advantages of financial
inclusion via digital means.
The think tank (ISSER), at the University of
Education, Winneba (UEW) presented its findings at the 2022 ISSER Road Show,
arguing that although the E-Levy charge was intended to meet the government's
demand for additional revenue, the tax rate was punitive and that starting with
a lower rate would have encouraged more people to buy into the concept.
Prof. Quartey was speaking on the topic:
"Harnessing stakeholder engagement and feedback for research impact”.
With the present tax rate, the economist fears
that the government's aim of raising GH4.1 billion would be missed since more
individuals will avoid utilising the platform and instead utilise other tactics
to avoid paying.
E-business
"The
1.5 per cent E-transaction levy rate is punitive and should be revised
downwards to between 0.5 per cent and 0.75 per cent to allow more people to use
the service and avoid eroding the gains made in digital financial inclusion,”
he said.
He said that the present amount of the tax was
likely to have an effect on E-business and other digital firms, which might
have a disproportionate impact on living costs.
Prof. Quartey indicated that all nations who tried
the E-Levy had gone no higher than 1%, but the country chose to start with 1.5
percent.
"Even though it is not bad, there should have
been thorough sensitisation to curb the misconception before rolling it
out," he added.
Economic stability
Prof. Quartey noted that the country had suffered
significant setbacks as a result of global turmoil, which had been sparked by
the COVID-19 outbreak and the recent Russia-Ukraine conflict, and that the
government would need to set long-term goals to stabilise the economy and make
it more shock-resistant.
ISSER's Director urged the government to realign
and evaluate policies in order to find answers to the socio-economic
difficulties that are affecting people's lives and livelihoods.
The economist emphasised that the government
should evaluate flagship programmes to ensure that they are cost-effective.
Other economic recovery initiatives supported by
Prof. Quartey include broadening the tax base and improving revenue mobilisation
via digitalisation.
He also advocated for more investment in the
agricultural value chain and increased export commodity value.
Youth unemployment
In terms
of young employment, ISSER's director suggested that the government work with
the private sector to absorb a bigger percentage of the population.
He believes that transitioning the Nation Builders
Corps (NABCO) to YouStart would be more successful if he worked with the
business sector.
Prof. Quartey believes that totally removing road
charges is useless, and that the government might have modified tollbooths to
fulfil demand and alleviate traffic congestion at particular tollbooths.
He asked the government to reintroduce the tolls,
pointing out that they might be converted into an e-pass to assist relieve
traffic congestion.
"Addressing the usual congestion at toll
gates can be improved through efficient e-pass system as is being practised in
Ghana and in the sub-region."
Prof. Quartey echoed ISSER's plea for property taxes to be collected, claiming
that given the size of mansions in metropolitan areas, the tax might be a
considerable source of income, but that it was seldom collected.
Corruption
Prof. Yaa
Adobea Owusu, an Associate Professor of Medical Sociology and Public Health at
ISSER, noted in her presentation that corruption is on the increase and that
decreasing it to the bare minimum would need collaborative and critical
efforts.
She advocated for the media, civil society
organisations, and individuals to be given more authority so that their
combined efforts may be used to successfully battle corruption.
Prof. Andy Ofori-Birikorang, the
Pro-Vice-Chancellor of the University of Western Australia, who led the event,
encouraged policymakers and academics to keep working together to find
appropriate solutions to socioeconomic concerns.
Source: ghananews.hrforum.uk
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