Dr. Michael Kpessa Whyte, senior lecturer at the University of Ghana and a leading member of the National Democratic Congress (NDC) has described the proposed levy on electronic transactions as anti-business, anti-financial inclusion and irrational.

According to him, there is the need to mobilize all Ghanaians to make sure that the e-levy bill which is currently before Parliament is rejected.

“We must mobilize every normal citizen of Ghana to oppose the obnoxious e-levy. It is anti-business, anti-financial inclusion, and above all irrational. Why would a person paying for an item via momo pay 1.75 tax while another person paying same amount in same shop get exemption?”
Dr. Kpessa Whyte

The former Executive Director of the National Service Scheme stated that the e-levy that the government is keen on introducing amounts to taxing poverty to promote prosperity. He lamented that should the proposed electronic levy be accepted by Parliament, it will have a toll on the lives of the poor and marginalized in the Ghanaian society.

“The Government of Ghana is proposing to tax poverty to promote prosperity. Just wondering what analysis went into a policy that taxes the e-movement of money. The poor and the unbanked population will be the hardest hit by this policy. The policy is anti-financial inclusion”.
Dr. Kpessa Whyte

Good governance requires consensus

According to Dr Michael Kpessa Whyte, the current New Patriotic Party (NPP) administration has entered into politics with a competitive mindset which he believes, is wrong and remains a “recipe for failure”.

“Dear @MBawumia and @NAkufoAddo in politics, elections are driven by competition but good governance requires consensus, collaboration, and cooperation. Getting into governance with competition-mindset is a recipe for failure. You cannot tax poverty to fight poverty!”
Dr. Kpessa Whyte

Dr Michael Kpessa Whyte clarified in a post that the NDC, as a party, stands on its social democratic principles which seek to protect the poor and the marginalized in society and hence the party’s commitment to fight against the introduction of the “obnoxious e-levy”.

“For the avoidance of doubt, the position of the NDC MPs on the e-levy is in defence of financial inclusion, and in sync with the party’s social democratic principles of being a voice for the poor, vulnerable, and marginalized. In its present form, the e-levy is daylight robbery”.
Dr. Kpessa Whyte

Dr Michael Kpessa Whyte further stated that the “NDC MPs cannot do it alone” and as such, called on all Ghanaians and civic society organizations to stand their grounds and fight collectively against the introduction of the proposed levy on financial transactions in the country.

The ‘JM Effect’ on the proposed e-levy

On a lighter note, Dr Michael Kpessa Whyte asked if the credit will be given to Former President, John Dramani Mahama should parliament makes a U-turn on the proposed e-levy when it resumes its sittings next year.

“By the way, if parliament resumes and the government changes its mind on the e-levy, would you call that the ‘JM effect’?”
Dr. Kpessa Whyte

The government, as part of its efforts to widen the tax net and rope in the informal sector, proposed the introduction of a 1.75% electronic levy on all transactions but exclude daily cumulative transactions to the tune of GH¢100 as a way of protecting the poor. But this has sparked public outcry since November 17, 2021 when the Minister of Finance presented the proposal to Parliament.

With Parliament unable to reach a consensus in 2021, Ghanaians now awaits with earnestness how the House will resolve the controversies surrounding the proposed levy when it resumes sittings in January next year.