Repeal of e-levy will ensure principle-based taxation – prof. John Gatsi

Dean of the School of Business at the University of Cape Coast, Prof John Gatsi, has added his voice to calls for the e-levy to be repealed.

Speaking on Accra-based Joy News, Prof. Gatsi who is also a lawyer said the repeal of the tax that levies capital will make way for principle-based taxation.

He also points out that a repeal of the e-levy will not be the first time a bad tax is repealed as the repealing of statutes relating to taxation and institutional governance is not new especially when the repeal gives way to a more efficient, business-friendly and principles based taxation.

The comment comes in the wake of the Supreme Court dismissing an injunction application by the opposition National Democratic Congress (NDC) against the e-levy. However, the substantive case is yet to be heard.

Explaining, Prof John Gatsi said the rate and the threshold are secondary matters to the levy and that the main issue is that it does not present fairness and above all taxes resources which should not be taxed.

He added that if the repeal is focused on making the levy principled and exempting certain transactions, revenue losses will not be occasioned.

Prof. Gatsi said he did not believe that the NDC’s call for repeal was just politically motivated and that the NDC’s call is influenced by the fact that the party has an alternative to the e-levy.

He said he did not believe a repeal of the e-levy Act means a loss of about GHS7billion revenue expected from it. 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 Election 2024 and that the government has 2yrs to collect the levy if legal challenges are unsuccessful