Professor Stephen Adei, a renowned economist and former Rector of GIMPA, has urged the government to retain the Electronic Transfer Levy (E-Levy), increase the betting tax to 50%, and eliminate the numerous levies that burden Ghanaians.
He believes these measures will streamline tax administration, boost revenue collection, and address pressing social issues like gambling addiction.
Prof. Adei explained that while the E-Levy is one of the easiest taxes to collect, its current rate has been a major point of contention among Ghanaians. He suggested that reducing the rate could make it more palatable while still retaining its effectiveness.
“In tax administration, if it costs more to collect money than what you are going to get, you better forget it. The E-Levy, despite its controversies, is easy to collect and should be retained,” he said during an interview on TV3’s Hot Issues.
He expressed frustration with Ghana’s overly complex tax structure, sharing a personal experience where 21 different taxes were applied to an item he imported. Prof. Adei described this as excessive and called for a thorough review of the tax system.
“That is ridiculous. We need a total look at the taxes,” he stated. He recommended removing less impactful levies, such as the emissions tax and COVID levy, and focusing on property taxes, which he believes are more practical and harder to evade. He also mentioned that retaining the E-Levy is crucial in simplifying tax collection. “You cannot put your house in your pocket,” he added.
Reflecting on past governance challenges, Prof. Adei warned the incoming Mahama administration to be cautious in managing public expectations. He pointed out that President Akufo-Addo’s failure to fulfill key promises, such as making Ghana self-reliant, eroded trust in his government.
“Managing expectations is critical in running a country, an organization, or even a home,” he said, emphasizing that unmet promises often lead to public disappointment.
On the issue of betting, Prof. Adei took a firm stance, advocating for a significant increase in the tax rate to 50%. He argued that gambling is a harmful habit that should be discouraged through taxation.
“As a father and a Christian leader, I would want betting taxes to be 50% because I don’t want my grandchildren to be betting. Betting is one of the disastrous habits that we should discourage,” he stated emotionally, appealing to both policymakers and the public to consider the long-term societal impact of such habits.
