E-Levy must go – Kofi Adams stands firm on cashless economy

Minister for Sports and Recreation and Member of Parliament for the Buem Constituency, Kofi Adams has reaffirmed the government’s commitment to abolishing the E-Levy, citing its negative impact on the fintech industry and the nation’s shift toward a cashless economy.

Speaking on GHOne monitored by MyNewsGH, he outlined the challenges posed by the levy and the government’s approach to addressing them.

“Promises have been made, and we intend to keep those promises,” he stated. “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.”

Adams highlighted how the E-Levy discourages the use of digital payment systems. “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.

He painted a vivid picture of the current scenario, emphasizing how the levy creates a financial disincentive for digital payments.

“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 asked.

Adams also pointed out the hidden costs of relying on 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,” he said, urging for a better system.

“The E-Levy must go,” he reiterated. “The other taxes we have indicated will also go, but we will reduce some expenditures in certain areas to balance the situation.”

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