Residents of Sogakope welcome E-Levy abolishment, but express concerns over revenue loss

The planned abolishment of the Electronic Transaction Levy (E-Levy) as stated by the Finance Minister Dr. Cassiel Ato Baah Forson in the 2025 budget has been met with enthusiasm from residents of Sogakope in the South Tongu district.

Business owners, mobile money vendors, and consumers alike have expressed relief and optimism about the potential benefits of scrapping the levy.

According to Mr Ebenezer Attipoe, a resident of Sogakope, the abolishment of the E-Levy will reduce the cost of living and provide relief to consumers during electronic money transfers. “This is a welcome development, as it will help alleviate the financial burden on citizens,” he said.

Mrs Phidelia Awumey, a cold store operator, also shared her excitement about the planned abolishment. “I frequently send large sums of money to purchase goods, and the E-Levy deductions are substantial. In fact, the amount deducted could purchase an additional carton of fresh fish. This is indeed good news for my business,” she exclaimed.

However, some residents have expressed concerns that abolishing the E-Levy could result in significant revenue losses for the government. “While we appreciate the relief from the E-Levy, we must also consider the potential impact on national development,” said one resident. “The government may lose a significant source of revenue, which could be used to fund essential projects and services.”

The E-Levy, introduced to tax electronic transactions, has been a subject of controversy since its inception. While the government aimed to generate revenue through the levy, critics argued that it would disproportionately affect low-income individuals and small businesses.

The Ghana News Agency has observed after several interactions with residents that the planned abolishment of the E-Levy is expected to boost economic activity, particularly in the informal sector. Mobile money vendors and small business owners, who have been hardest hit by the levy, are likely to benefit from the relief.

Source: GNA