Political Scientist Dr. Kwame Asah-Asante has advised the government against abolishing the Electronic Levy (E-Levy) and instead recommended a phased reduction of the tax rate. Speaking on JoyNews’ AM Show on Friday, January 10, Dr. Asah-Asante explained that while the E-Levy remains unpopular, its complete removal could jeopardize the country’s financial stability.

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“The best approach is to reduce the incidence of taxation over time, as these are the low-hanging fruits that can be effectively utilised,” he stated, suggesting that a gradual reduction would be more feasible than its outright elimination.Dr. Asah-Asante acknowledged the discomfort caused by the 1.5 percent levy but pointed out that it has become an essential revenue stream for the government.

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“We have lived with this burden, and we are moving on,” he remarked, adding that the country already faces numerous other taxes that strain the public.The political scientist argued that a phased reduction would make it easier for the public to comply with the levy, ultimately boosting participation and government revenue.Dr. Asah-Asante also emphasized the importance of generating domestic resources to fund the country’s development.

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“You can never build the capacity of the state without generating your own resources,” he said, stressing the need for innovation and increased reliance on internally generated funds to support long-term economic growth.He cautioned against excessive dependence on external funding and advocated for more sustainable approaches to financing the nation’s development needs.

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