Ghana’s Institute of Statistical, Social, and Economic Research (ISSER) has recommended against an immediate repeal of the E-levy and COVID-19 levy, cautioning that a sudden removal could disrupt the nation’s ongoing IMF-backed economic recovery plan.

In its recent State of the Ghanaian Economy Report, ISSER proposed a phased elimination of these levies as part of the 2025 budget to avoid undermining fiscal stability.

Together, the E-levy and COVID-19 levy are projected to generate over GH¢5 billion in revenue, with GH¢2.1 billion from the E-levy and GH¢3.172 billion from the COVID-19 levy.

"Scrap E-levy (GH¢2.1bn), COVID-19 Levy (GH¢3.172bn), Betting Tax – What is the alternative?” the report questions, urging policymakers to carefully evaluate the timing and impact of eliminating these revenue streams, which are essential for meeting Ghana's IMF program obligations.

ISSER’s stance reflects a nuanced approach to balancing public relief with fiscal discipline. In the current economic climate—marked by inflationary pressures and a depreciating currency—these levies are seen as critical sources of revenue.

The report emphasises that any reduction should be aligned with broader fiscal policies to sustain economic stability.

The report also pointed to the Betting Tax, suggesting it could be developed as an alternative revenue source, though its specifics remain undefined.

ISSER advises the government to explore such options to create a sustainable revenue framework that eventually replaces the E-levy and COVID-19 levy without jeopardising IMF commitments.

Watch the latest edition of BizHeadlines below:





Click here to follow the GhanaWeb Business WhatsApp channel