Accra, March 6, GNA – There was heavy vehicular traffic on the Adenta – Dodowa road on this particular day and passengers onboard the commercial bus (trotro) became uncomfortable and they started wondering if they were ever going to reach home.
The bus driver branched off the road in search of an alternative route to help move faster. He did not miss the usual “hey driver, where do you think you are headed,” while others advised him to calmly follow the regular route for fear of running into ‘more trouble’ and some just sat quietly and slept off in frustration.
The driver used a rather bumpy road which sometimes made the passengers shake to the bone. Some of them were visibly angry and would shout “driver towobo” to wit, be patient but before long they were back on the main road.
They had been able to dodge the most intense part of the traffic and they were cruising smoothly, making everybody more relaxed and confident that they were going to get home shortly.
Akosua (not her real name) was delighted that they were riding smoothly, she was one of the concerned voices when the driver veered off the main route in search of an alternative route and her concern was their safety.
She said she wanted the driver to be accountable to them.
The scenario above can be compared to Ghana’s economic situation and heat generated by the government’s proposed electronic transaction tax (e-levy).
Many people admit that the pre-pandemic economy which was doing very well has gone into a tailspin and we are now riding in turbulent economic times.
The E- Levy will be applied only to the originator of a transaction on an electronic platform – fintech platforms, online banking and Momo platforms.
There are Ghanaians, who are strongly opposed to the imposition of the electronic transaction tax and they have been citing the harsh economic conditions.
The Government says the e-levy represents an opportunity to widen the tax net – to end the situation where 2.4 million people are carrying the direct tax burden of the 30.8 million population.
Some people have alluded that Ghana is “broke” and yet the government is not willing to go borrowing. The only way to raise money for development and keep the country going is through the payment of taxes
President Nana Addo Dankwa Akufo-Addo has made a strong case for the tax saying; “It is time we accepted the full implications of our goal of Ghana Beyond Aid and designed our fiscal profile accordingly.
The Asian Tigers, whom we envy and want to emulate, financed their rapid development from their own savings. We need to do the same.”
He said it was an innovative fiscal measure that would shore up Ghana’s fiscal profile, and raise the funds needed for the speedy transformation of the economy, adding that the country should raise money domestically to fund its development imperatives and end its dependence on foreign savings.
“We have to make concerted efforts as partners to hasten our recovery from COVID-19 by finding intelligent ways of bringing everyone on board to contribute their quota, no matter how small.”
The average tax-to-GDP ratio in West Africa stands at 18 per cent, and the average for OECD countries stands at 34 per cent.
“It is, thus, no wonder that American, German, French, Japanese and British peoples, amongst others, can readily find the means to fund their own development, particularly their infrastructural development, whereas we are constantly struggling to do the same.”
Like the commercial bus driver on the traffic prone road, there are those who think that the government is right in using alternative unfamiliar route to help put the wobbling economy on even keel – steer us to our preferred destination, while others think otherwise.
There is yet another group of people, who although believe that the E-Levy is a step in the right direction, they would only support its introduction, on condition that there will be accountability.
Like Akosua on the commercial bus, the writer thinks that Ghanaians should be more concerned with how to make sure that there will be accountability.
“If I am contributing so much in taxes, I should also know exactly where my tax goes and what my tax is doing for me and my fellow Ghanaians.”
It is unfortunate that the discourse on the debate has been mired in emotional outbursts, threats, insults and the enactment of a doomsday scenario.
The electronic transaction tax, I dare say is a necessary evil that should make every Ghanaian to be a citizen and not a spectator, to ask questions, to be concerned and to demand accountability.
GNA