Kofi Adams, the Minister for Sports and Recreation-designate and Member of Parliament for the Buem Constituency, has once again assured the public that the government remains committed to removing the E-Levy, which he argues has adversely affected the fintech industry and the country’s transition to a cashless economy.
Speaking during an interview on GHOne, Adams discussed the difficulties brought about by the levy and how the government plans to address them. “Promises have been made, and we intend to keep those promises,” he said, emphasizing that any new developments would require further consultation. “If anything comes up for further discussion, that will be a new thing that must be discussed. We will consult broadly to see how that must be managed. But for now, the promise is that E-Levy must go.”
He stressed that the E-Levy has had a negative effect, particularly on digital payment adoption. “The E-Levy has not really helped. Even though it’s a revenue handle, it has affected the fintech industry and the goal of moving toward a cashless system,” he explained.
Adams painted a clear picture of the situation, explaining how the levy discourages people from using digital payment options. “If you go to buy fuel and pay with mobile money, they will charge you more. But if I take physical cash and pay, I pay only the exact amount. Where is the motivation for you to go cashless?” he questioned.
He also highlighted the hidden costs of dealing with physical cash. “Handling physical cash makes it dirty, and within the shortest possible time, that money has to be reprinted because it’s worn out. If you look at the Bank of Ghana, the cost of reprinting notes is so high that we end up spending more,” Adams said, calling for a more efficient alternative.
“The E-Levy must go,” Adams reiterated, while also noting that some other taxes would be phased out, though some budget adjustments would be necessary to balance the nation’s finances.
