0
0 The Chief Executive Officer of the Ghana Chamber of Commerce and Industry, has strongly criticized the E-Levy, describing it as the most nuisance tax he has ever seen in the country.
Mark Badu Aboagye speaking on Joy News’ PM Express Business Edition on Thursday, March 13, expressed his concerns over the tax’s impact on both businesses and consumers.
“For me, E-Levy is undoubtedly the most nuisance tax that I’ve ever seen in this country because of how it impacts both consumption and also production.
“It distorts consumption, it distorts production,” Aboagye stated emphatically.
He highlighted that from the very day the E-Levy was introduced, the Chamber of Commerce had raised concerns about its potential harm to businesses and consumers alike.
Mr Badu Aboagye acknowledged that the government’s recent decision to scrap the E-Levy was a welcome development, describing it as a “fair deal.”
He noted that through advocacy efforts, the initial rate of the E-Levy had been reduced to 1%, but its very existence continued to place a burden on economic activities.
“We clearly indicated that it’s not going to help businesses. It’s not going to help consumers,” he stressed.
Beyond the E-Levy, he also raised concerns about the overall tax structure in Ghana, pointing out that the VAT system remains overly complicated and does not encourage compliance.
“Through the tax reform, we have said it over and over again that our VAT structure is too complicated. It doesn’t enhance any compliance.
“People don’t even understand a structure that combines both the Standard VAT and most of these levies that you cannot claim input on, but they translate into direct costs to businesses.”
Mark Badu Aboagye expressed frustration over the government’s decision to defer any clear resolution on VAT reforms.
“We were expecting that there would be a straightforward comment on what exactly they are going to do.
“But to defer it to a period that you are not even aware of means that within this time, you’re still going to be paying the VAT of 22%. I don’t know when they are going to take it out,” he remarked.
While acknowledging that the 2025 budget has its opportunities, Aboagye remained critical of certain policies that, in his view, fail to ease the tax burden on businesses.
“Obviously, just like any normal budget, there will be some opportunities, and there will be some inherent risks. That is basically what you are seeing,” he stated.
With the macroeconomic indicators presented in the budget, including inflation figures, Aboagye suggested that there were still unresolved issues that needed further discussion.
“Even though I have issues with it, maybe we’ll get there,” he hinted, indicating that there are deeper concerns about the broader economic picture.
His comments reinforce the need for continuous engagement between the government and business stakeholders to ensure tax policies are structured in a way that fosters economic growth rather than impeding it.
