The Data Dr. Bawumia Wants To See To Reverse The E-levy

Why mention H.E the Vice-President Dr. Bawumia’s name? Because his name is synonymous with data. Whether he presents his data all the time in the right context or not, will be deemed partisan politics and so unnecessary.

There are some data and figures that the Bawumia-led government’s Economic Management Team wants to see that will force them to reverse the e-levy.

Governments all over the world use data to govern. More especially, governments use data to read the heartbeat of every sector of the country. Otherwise, there is no need for a population and housing census conducted around the world at regular intervals. Volumes of petrol or cement imported or sold in the country could predict levels of production in the country. More petrol sales means more machines are working especially the movement of people who are workers. More cement sales mean a construction boom. More pension contributors mean more employment.

https://educativenewsroom.com/business/10-jobs-to-prepare-to-do-in-pension-actively/

Policies are made mostly based on data and figures in the form of benefit cost analysis. Before the e-levy, the government would have studied the reactions of Ghanaians with respect to any small change in pricing. Either when the price is reviewed upward or downwards. Price reviews on petrol and utilities all provide some data for the government to study the reactions of Ghanaians towards price reviews. But for a more sector specific study with respect to the telecommunication sector, price wars and regulatory directives may all have provided a catalogue of data for the government to study. While some telecom networks like Vodafone and AitelTigo decided to provide some incentives for customers to either use their networks and/or become loyal customers, in the form of cheaper mobile data and zero-rated charge on mobile money transfers, others like MTN decided to cash in using their dominant advantage.

MTN mobile data is relatively more expensive, yet a lot of consumers seem not to bother. All other MTN services like voice calls and mash-up products are more expensive, but users are still very loyal despite the availability of mobile number interoperability for users to switch networks and still keep their well-known mobile numbers. With the onset of the e-levy charged on the capital and disposable income of businesses and individuals, there are only two main indicators Ghanaians can provide Dr. Bawumia led the Government’s Economic Management Team to reverse the e-levy. The two indicators would be seen in the data that would be generated from the electronic transactions that Ghanaians will undertake.

First of all, Dr. Bawumia would like to see that all taxable electronic transactions have been reduced by about fifty per cent (50%). The taxable electronic transactions reduced by fifty percent (50) means the revenue expected from the tax would be reduced by about the same margin, 50%. When the government compares their 50% revenue generated with the cost of printing paper money, the cost invested in electronic transaction platforms like ezswitch, GHlink and QR code, there will not be any incentive to continue with the e-levy. The possible means to reduce an individual’s taxable electronic money transfers below 50% is captured in the article on ‘four (4) ways to avoid E-levy’. When the individual taxable electronic money transfers are accumulated and it is around only 50% of projected estimates, Dr. Bawumia will definitely take action to reverse the nuisance tax.

https://educativenewsroom.com/opinions/4-ways-to-avoid-paying-e-levy/

Secondly, opting for electronic money transfer services from cheaper sources at individual levels will reduce transactions on platforms that charge relatively higher. When most of the higher-charging institutions are not getting the needed revenue to guarantee their expected return on investment, the Government will have no option than to reverse the e-levy tax, because companies or firms can not invest in a country with huge capital to boost the economy only for the government to be responsible for their failure. The country will not be deemed investment friendly.

https://educativenewsroom.com/opinions/vodafone-ghana-and-ghanaians-called-for-the-introduction-of-the-e-levy/

Now that you know what to do to help facilitate the reversal of the e-levy as a citizen and not a spectator, the choice is yours.

By: Anonymous

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