The Ghana Union of Traders Association (GUTA) has said it is not opposed to the government’s e-levy but rather wants the Covid-19 levy expunged.
President Nana Akufo-Addo pleaded with Ghanaians to keep paying the Covid-19 levy despite the pandemic being over.
In his last Covid update on Sunday, 28 May 2023, the president said: “The COVID Health Recovery Levy that was introduced to help fill some of the expenditure holes might not be the most popular tax, but I entreat all of you to bear with us.”
Reacting to this in a correction notice, however, the President of GUTA, Dr Joseph Obeng, explained that the association is not opposed to taxes including the e-levy, noting: “The e-levy, as it is structured now, is OK, and will help expand the tax net but the Covid levy is what needs to be taken out of the table to help lessen the burden of businesses.”
The GUTA president noted the Covid levy “is deemed as a nuisance tax now that the Covid era is over.”
The government imposed the covid levy on the supply of goods and services and imports to raise revenue to support Covid-19 expenditures and to provide for related matters.
Within eight months of coming into implementation, the levy accrued GH¢773.93 million, according to fiscal data released by the Ministry of Finance on 22 April 2022.
It was 12.7 per cent lower than the budget target of GH¢889.07 million.
In 2021, expenditures on Covid-19 and related issues, totalled more than GH¢2.8 billion.