These calls follow President John Dramani Mahama’s approval of bills repealing the Electronic Transfer Levy (E-levy), betting tax, and the emissions levy.

Geoffrey Kabutey Ocansey, Executive Director of Revenue Mobilisation Africa, stressed the importance of including the informal sector in the tax net. "Around 70% of those who should be paying taxes are in the informal sector, yet fewer than 10% are contributing," Ocansey explained. He pointed out that many workers, especially in sectors like construction, such as carpenters and plumbers, remain outside the tax system. He also noted that night traders, who operate late in markets, are largely ignored by tax collectors because they work outside regular hours.

Ocansey suggested the government should consider bringing back road tolls, a once-promising source of tax revenue that was scrapped. “Reintroducing the road toll system could be a key way for the government to raise much-needed funds,” he said. He also highlighted the importance of collecting property rates more effectively and called for closer collaboration between local authorities and the Ghana Revenue Authority to improve valuation and collection processes.

The economist also questioned the effectiveness of some of the recent tax measures, particularly the E-levy, which he described as regressive. He explained that it led to double taxation, with individuals taxed both on their income and again when transferring money, causing frustration and tax avoidance. As a result, many users abandoned electronic platforms, leading to a reduction in government revenue.

However, with the removal of the E-levy, Ocansey believes there are now clearer signs of improved compliance, as people are more willing to engage with the tax system when they feel it is fair and reasonable.

--ChannelAfrica--