Accra, Ghana//-Majority of Ghanaians do not trust that the government will use the revenues generated from the recently passed electronic transaction levy (e-levy) to fund development programmes in the country, a new Afrobarometer survey has revealed.
These Ghanaians who represent three-quarters are “not at all confident” (51%) that the government will fulfil its pledge to use the revenues generated by the e-levy to fund development programmes, while 24% of them are also “not very confident” that funds will be used for the intended purpose(s).
The findings of the Afrobarometer Ghana round 9 survey on the economy, taxation, and public service delivery indicated that citizens are almost evenly split as to whether they will continue to use electronic financial transactions.
The government introduced the e-levy on 1 May in a bid to widen the tax net. However, a large majority of Ghanaians think it is a bad idea and will mean a greater tax burden on citizens.
Presenting the findings of the survey in Accra today, the Director of Research at CDD-Ghana, Dr Edem Selormey, said the study also showed that a majority of Ghanaians believe there are several important goals that a tax revenue system must achieve.
These she mentioned include ensuring that people understand the taxes they owe, reducing the tax burden, using tax revenues more effectively, and ensuring that citizens and businesses pay taxes.
Speaking at a panel discussion after the launch of the survey, Godfred Bokpin, Economist and Professor of Finance at the University of Ghana Business School (UGBS); and UK-based Ghanaian Economist and Political Risk Analyst, Dr Theo Acheampong agreed that the findings of the survey largely reflect the views of Ghanaians.
Key findings
▪ Three-fourths of Ghanaians disapprove of the e-levy, including 67% who “strongly disapprove” of it.
▪ Only two in 10 (19%) endorse the new tax.
▪ A similar proportion (76%) think the e-levy is a bad idea because it will increase the tax burden on the poor and ordinary citizens. This includes 63% who “strongly agree” with this view.
▪ Three-quarters are also “not very confident” (24%) or “not at all confident” (51%) that the government will fulfil its pledge to use the revenues generated by the e-levy to fund development programmes.
▪ Faced with the e-levy, Ghanaians are about evenly split as to whether they will continue to use electronic financial transactions (47%) or avoid using them (49%) .
▪ A majority of Ghanaians agree that there are several important goals that a tax revenue system must achieve, including ensuring that people understand the taxes they owe (82%), reducing the tax burden (81%), using tax revenues more effectively (83%), and ensuring that citizens and businesses pay taxes (79%).
Instructively, Afrobarometer is a pan-African, non-partisan survey research network that provides reliable data on African experiences and evaluations of democracy, governance, and quality of life.
Eight survey rounds in up to 39 countries have been completed since 1999. Round 9 surveys (2021/2022) are currently underway.
Afrobarometer’s national partners conduct face-to-face interviews in the language of the respondent’s choice. The Afrobarometer team in Ghana, led by the Ghana Center for Democratic Development (CDD-Ghana), interviewed a nationally representative sample of 2,400 adult Ghanaians in April 2022.
A sample of this size yields country-level results with a margin of error of +/-2 percentage points at a 95% confidence level. Previous surveys were conducted in Ghana in 1999, 2002, 2005, 2008, 2012, 2014, 2017, and 2019.
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