The Institute of Statistical, Social, and Economic Research (ISSER) has advised against the immediate removal of Ghana’s E-levy and COVID-19 levy, stressing that a sudden repeal could disrupt the country’s IMF program.
In its State of the Ghanaian Economy Report, ISSER suggests that these levies, projected to generate over GH¢5 billion in revenue, be gradually phased out as part of the 2025 budget instead.
Highlighting the significant revenue expected from the E-levy and COVID-19 levy—estimated at GH¢2.1 billion and GH¢3.172 billion, respectively—ISSER’s report argues for a cautious approach.
“Scrap E-levy (GH¢2.1bn), COVID-19 Levy (GH¢3.172bn), Betting Tax – What is the alternative?” the report asks, urging policymakers to consider carefully how and when to eliminate these levies without jeopardizing Ghana’s commitments under the IMF program.
The recommendation underscores the institute’s concern over Ghana’s fiscal stability.
“These levies should be factored into the 2025 budget but not removed immediately,” ISSER advises, warning that a hasty repeal could derail progress on Ghana’s IMF-backed economic recovery plan.
ISSER’s call for a phased approach reflects the delicate balance between public relief and fiscal responsibility.
With Ghana’s economy under pressure from high inflation and exchange rate depreciation, the levies provide a crucial revenue stream.
According to ISSER, the removal of these taxes should align with broader fiscal policies designed to maintain economic stability.
Additionally, the report raises questions about the Betting Tax, which remains undefined but could serve as a supplementary revenue source.
ISSER encourages the government to explore such avenues as part of a comprehensive revenue strategy that can sustainably replace the E-levy and COVID-19 levy while adhering to IMF guidelines.
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