The Head of Economics at the University of Ghana, Prof. William Baah-Boateng, has suggested to government to reconsider a one per cent levy on electronic transactions (E-levy) instead of the 1.75 per cent proposed in the 2022 budget and fiscal policy.
He explained that, the 1.75 per cent proposed levy has the risk of derailing the country’s digitisation drive if implemented in its current form.
Prof. Baah-Boateng said this Tuesday at the Ghana Employers Association’s (GEA) forum on the 2022 budget held in Accra.
Prof. Baah-Boateng also urged government to reconsider the 1.75 per cent levy and make it conform with the elasticity of demand, explaining that, “the higher the cost of a product, people are going to stop using it with time, but rather the figure should be in such a way the user would not feel its impact.”
He said the levy on electronic transactions was fairly new and…