Electronic Tax (E-Levy) Policies in Africa: Evidence From Ghana

Abstract

The study addresses the question: how does public opinion shape the design of public policies in Africa and Ghana's E-levy? It examines public policies in some African states/countries in the efforts of governments to improve their revenues by imposing taxes on mobile money services. A quantitative research approach was used with an online opinion poll survey with respondents in Ghana. A simple random sampling method was used involving 120 respondents. The study found that most African states adopted electronic taxes to widen their tax base to cover the informal sector, especially the mobile money sector, especially in the post-COVID-19 era, as part of efforts to revamp their economies. In Ghana, it was found that the public policy design (E-levy) process was not open to citizens but shrouded in secrecy. Moreover, more than 80% of the respondents are aware of the policy but were divided on their level of knowledge on the percentage charge of the policy. It found that 80.4% of respondents dislike the policy for various reasons, including fewer consultations, increased costs for mobile money services/transactions, over-taxing, and the risk of return to cash payments. The study recommends broader consultations and open forums in the policy design process.