By Enoch 
With the National Democratic Congress (NDC) winning the 2024 elections, former President John Dramani Mahama is set to take office once again. One of his key promises during the campaign was to scrap several nuisance taxes within his first 100 days in office. This move is aimed at providing relief to Ghanaians and stimulating economic growth.
The Taxes to Be Scrapped
- E-Levy: The controversial electronic transfer tax, commonly known as the E-Levy, has been a significant point of contention. Mahama has promised to abolish this tax, which has been criticized for placing an undue burden on electronic transactions and stifling digital financial inclusion.
- COVID-19 Levy: Introduced during the pandemic to support the government’s response efforts, the COVID-19 levy is another tax that Mahama plans to eliminate. With the pandemic’s impact waning, the removal of this levy is expected to ease the financial burden on citizens.
- 10% Betting Tax: The 10% levy on betting winnings has been a source of frustration for many, particularly among the youth who engage in sports betting. Mahama’s promise to scrap this tax aims to address these concerns and provide some financial relief to bettors.
- Emissions Levy: The emissions levy, which targets vehicles and equipment that contribute to environmental pollution, is also on the chopping block. Mahama believes that removing this tax will help reduce the cost of transportation and industrial operations.
- Import Duty on Vehicles and Equipment for Industrial and Agricultural Purposes: Import duties on vehicles and equipment used for industrial and agricultural purposes have been seen as a hindrance to business growth. By scrapping these duties, Mahama aims to promote industrialization and agricultural development in Ghana.
The Rationale Behind the Tax Cuts
Mahama’s decision to scrap these taxes is rooted in his belief that they have placed an undue burden on Ghanaians and hindered economic growth. During his campaign, he emphasized the need to create a more conducive environment for businesses to thrive and for citizens to enjoy financial relief. By eliminating these nuisance taxes, Mahama hopes to stimulate economic activity and improve the overall standard of living for Ghanaians.
Public Reaction
The announcement of these tax cuts has been met with mixed reactions. Supporters of Mahama and the NDC have praised the move, viewing it as a positive step towards economic recovery and growth. They believe that the removal of these taxes will provide much-needed relief to businesses and individuals alike.
However, critics argue that scrapping these taxes could lead to a significant loss of revenue for the government, potentially impacting public services and infrastructure projects. They caution that the new administration will need to find alternative sources of revenue to offset the loss and ensure that essential services are not compromised.
Conclusion
As John Dramani Mahama prepares to take office, his promise to scrap several nuisance taxes within the first 100 days is a key aspect of his economic agenda. The removal of the E-Levy, COVID-19 levy, 10% betting tax, emissions levy, and import duties on vehicles and equipment for industrial and agricultural purposes is aimed at providing financial relief and stimulating economic growth. While the move has garnered both support and criticism, it underscores Mahama’s commitment to addressing the financial burdens faced by Ghanaians and promoting a more business-friendly environment.