ElvisAnokyenews Latest News Portal
Economics Professor, Godfred Alufar Bokpin, has criticized the E-Levy, stating that it was fundamentally flawed from the start due to a lack of proper scrutiny and analysis before implementation.
According to him, the policy was doomed to fail, as it was evident that the tax had been poorly structured.
“That channel and the road that financial inclusion plays actually in promoting consumption and promoting good and all of that, you will not situate a tax along that path, and I think that everybody, don’t need to be an economist to agree that this was poorly designed.
He further explained that the levy did not undergo rigorous evaluation at the Finance Ministry before its rollout. Professor Bokpin also urged the Ministry of Finance to address existing tax distortions, particularly those embedded in the VAT system.
“If you see the actual versus the expected and all of that, it tells you that this was not a policy that clearly went through the featuring process. Even I believe that at the Ministry of Finance, the Tax Policy Unit, I’m not sure that this one was really subjected to critical analysis, sensitivity analysis and all of that. It’s more emotionally driven and the results is quite clear.
“What is important for me also is for the Ministry of Finance to quickly take steps to correct the distortions in the vats. You know, the COVID-19 health levy embellished in the vats.” He said
The decision to repeal the E-Levy has been welcomed by various stakeholders, including business owners and mobile money users, who have long criticized the tax for its impact on digital financial transactions.
Source: Elvisanokyenews.net
