Experts urge strategic digital taxation after scrapping E-Levy and others

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The Centre for Policy Scrutiny has renewed calls for a more strategic approach to revenue mobilisation, urging government to prioritise taxation of Ghana’s rapidly expanding digital economy rather than abandoning key levies outright.

At a public lecture themed “Assessing the Abolishment of the E-Levy, COVID-19 Levy and the Betting Tax: Fiscal Impact and Equity Considerations,” Executive Director Dr. Adu Owusu Sarkodie criticised the decision to scrap what were described as nuisance taxes, warning that the move has widened gaps in domestic revenue generation.

He noted that Ghana’s rising debt-to-revenue ratio reflects increasing dependence on borrowing, underscoring the need for sustainable and innovative tax policies.

Dr. Sarkodie stressed that while concerns about the design and implementation of taxes such as the E-Levy are valid, the underlying principle—capturing value from the digital economy—remains crucial.

With mobile money transactions, online betting, and digital commerce expanding rapidly, he argued that Ghana cannot afford to leave the sector largely untaxed.

Also speaking at the event, Isaac Danso Agyiri, a lawyer, chartered accountant and tax expert at Emerging Markets Advisory, called for a rethinking rather than outright rejection of the abolished taxes.

He suggested that reintroducing them under revised frameworks—or even different names—could improve public acceptance while preserving their fiscal intent.

According to him, Ghana continues to lag behind many African peers in tax collection efficiency, particularly in emerging sectors. He emphasised that the digital economy presents a significant opportunity to broaden the tax base without overburdening traditional sectors.

Mr. Agyiri proposed a more targeted approach focused on high-volume digital transactions, online gaming platforms, and cross-border digital services, ensuring that taxation is fair, transparent, and aligned with global best practices.

He added that better stakeholder engagement and clearer communication would be key to gaining public trust.

Meanwhile, Technical Advisor to the Commissioner-General of the Ghana Revenue Authority, Elsie Apaw Ocloo, said the removal of the taxes has not undermined revenue mobilisation, noting that the Authority recorded a 20 percent increase in collections in the first quarter compared to the same period last year.

The experts concluded that rather than scrapping digital-related taxes entirely, government should refine them into a coherent digital taxation strategy—one that balances revenue generation with equity, supports economic growth, and reflects Ghana’s evolving digital landscape.

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