Director of the Institute of Statistical, Social, and Economic Research (ISSER), Professor Peter Quartey, has disclosed a significant 58% deviation from the revenue targets of the E-levy.

This revelation During a pre-budget conversation on Joy FM's Super Morning Show, comes after ISSER's recent report on the Ghanaian economy, released on October 31, 2023, which examined the efficacy of the E-levy and raised questions about the optimal tax rate for digital transactions.

The report highlighted that the adjustment of the E-levy rate from 1.5% to 1% in January 2023 initially led to a decline in the usage of alternative payment systems. However, the figures rebounded sharply in February, suggesting a potentially short-lived impact of the rate adjustment.

Concerns were raised about whether the current E-levy rate is optimal, given the fluctuating patterns observed in alternative payment systems. The ISSER report, extending its analysis beyond Ghana, emphasized that in various countries studied, anticipated revenues from taxes did not materialize, underscoring the need for optimizing tax rates.

The report serves as a vital resource for policymakers, urging a reconsideration of the E-levy rate to strike a balance between revenue generation and sustaining consumer engagement in taxable transactions.

Professor Quartey expressed discomfort with the lack of real-time data, hindering academics' ability to make informed suggestions for effective policy implementation. This highlights the challenges in navigating the evolving landscape of digital taxation and underscores the pressing need for timely and accurate data to inform policy decisions.