Flagbearer of the New Patriotic Party, (NPP) Dr. Mahamudu Bawumia has announced his intention to scrap e-levy, emissions tax, bet tax if elected as President
According to Bawumia, he will scrap the E-Levy when he is voted President to encourage Ghanaians to embrace the use of electronic payment systems to push the country towards a cashless economy.
“To accomplish this, there will be no taxes on digital payments under my administration. The e-levy will therefore be abolished,” Dr Bawumia announced.
“I would like to bring Ghana close to a cashless economy in the shortest possible time. So far the Bank of Ghana has made a lot of progress in this direction by putting in place a lot of the systems and infrastructure required. These include mobile money interoperability, merchant interoperability, Universal QRCode payment system, Gh-Link, debit cards, Ezwich, and GhanaPay."
"We have put in place the necessary infrastructure for Ghana to go cashless. Recently the Bank of Ghana has completed a pilot of a digital version of the Ghana cedi note in Sefwi Wiawso. This is known as central bank digital currency (CBDC) or e-cedi. The e-cedi is designed to work online and offline and will be launched by the Bank of Ghana in due course."
Dr. Bawumia also announced that as part of a new tax regime by his government, he will also abolish the emission tax, tax on betting as well as the proposed 15% VAT on electricity tariffs, if it is in existence by January 2025.
He also announced that his government would introduce what he described as a friendly, flat tax regime for Ghana, which will boost individuals and businesses, particularly small and medium-scale enterprises (SME’s).
“My administration will introduce a very simple, citizen and business-friendly flat tax regime. A flat tax of a % of income for individuals and SMEs, which constitute 98% of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor,” Dr Bawumia indicated.
What is the emission levy about?
The government and the Ghana Revenue Authority (GRA) commenced the collection of the Emission Levy Act, 2023 (Act 112) which was imposed on vehicles in the country.
The tax measure, which was passed by parliament in December 2023, seeks to impose a levy on carbon dioxide equivalent emissions on internal combustion engine vehicles.
The levy forms part of government efforts aimed at tackling greenhouse gas emissions while promoting environmental and eco-friendly technologies to achieve net zero targets.
For instance, users of motorcycles and tricycles are required to pay GH¢75 per annum for the levy.
Motor vehicles, buses, and coaches which are up to 3000 cc will pay GH¢150 per annum, while motor vehicles, buses, and coaches above 3000 cc, cargo trucks, and articulated trucks will pay GH¢300 per annum.
See the list below as published by the GRA
• Motorcycles & tricycles - GH¢75 per annum
• Motor vehicles, buses and coaches up to 3000 cc - GH¢150 per annum
• (i) Motor vehicles, buses and coaches above 3000 cc - GH¢300 per annum<br