“E-levy, COVID tax & other unnecessary levies must go immediately,”- John Kwakye to NDC
Dr. John Kwakye, Director of Research at the Institute of Economic Affairs (IEA), has called on the National Democratic Congress (NDC) administration to ease the burden on businesses and individuals.
During an appearance on The Big Issue on Channel One TV on Saturday, February 8, Dr. Kwakye criticized a number of taxes, including the Electronic Transfer Levy (E-Levy), Emissions Levy, Covid-19 Health Recovery Levy, and Growth and Sustainability Levy, arguing that they hinder economic progress.
He argued that these taxes go against basic economic principles and put too much pressure on individuals and businesses, slowing down economic growth.
“As an economist, I’ve never believed these taxes should exist. Taxes are supposed to be on incomes, transactions, or assets—not on transfers. The E-levy is a nuisance tax and needs to go. The emission and sanitation levies should also be scrapped,” he said.
The Electronic Transfer Levy (E-Levy), introduced in 2022, applies charges to electronic transactions, such as mobile money and bank transfers.
Critics believe the levy discourages digital payments and financial inclusion—both critical for modern economic growth.
Dr. John Kwakye stressed that, aside from these specific levies, Ghanaians face an overwhelming tax burden. Businesses and consumers are hit with multiple taxes that eat into disposable income and reduce investment opportunities.
He urged the NDC government to focus on tax efficiency and adopt policies that boost economic growth without putting more pressure on taxpayers.
“The COVID-19 tax is outdated and unnecessary,” he said. “There’s also the Growth and Sustainability Tax, which some companies have been paying since 2001.”
The COVID-19 Health Recovery Levy was meant to help the government recover from pandemic expenses but continues to be in effect despite the pandemic easing.
