Repeal of e-levy will ensure principled based taxation – Prof. Gatsi

The Dean of the University of Cape Coast, Prof John Gatsi has said “repealing statutes relating to taxation and institutional governance is not new especially when the repeal gives way to a more efficient, business-friendly and principled”.

Explaining Raymond Acquah on JoyNews on Thursday 5th May 2022 , Prof John Gatsi said the repeal of the E-levy Act is doable to correct the unprincipled nature of the levy.

According to him, “the rate and the threshold are secondary matters to the levy that the main issue is that it does not present fairness and above all taxes resources which should not be taxed.”

Prof. Gatsi explained that if the repeal is focused on making the levy principled and exempting certain transactions revenue losses will not be occasioned.

When asked whether the call by the NDC is mere politics, Prof Gatsi replied no adding that “politicians, in reality, don’t cancel taxes unless they have alternatives and that so long as the NDC is able to work on alternatives and ensure principled based levy to reflect the interest of Ghanaians, it is doable.”

For him, he doesn’t think the repeal of the e-levy Act means about GHS7billion revenue expectation emphasizing that ‘it is rather a lawmaking process to ensure revenues are generated based on principle and that it should be less burdensome and efficient.”

He said the repeal is based on winning the election 2024 and that the government has 2yrs to collect the levy if legal challenges are unsuccessful.