Minister Kofi Adams Reaffirms Government’s Commitment to Abolishing E-Levy

Kofi Adams, the Minister for Sports and Recreation and Member of Parliament for Buem Constituency, has reiterated the government’s stance on abolishing the controversial E-Levy, emphasizing its detrimental effect on the fintech industry and the country’s broader shift toward a cashless economy.

Speaking in an interview on GHOne, Adams detailed the negative consequences of the levy, stating that it had failed to meet its intended objectives and had instead hindered the growth of digital payment systems. “Promises have been made, and we intend to keep those promises,” Adams said, stressing that discussions about the E-Levy would continue if needed, but the government’s current position remains unchanged: the levy must be abolished.

He highlighted how the E-Levy, by imposing extra charges on mobile money transactions, has created a disincentive for people to embrace digital payment methods. Adams pointed out a real-world example where paying for fuel via mobile money incurs additional charges, while paying with physical cash incurs no extra cost. “Where is the motivation for you to go cashless?” Adams asked, urging the government to move away from a system that penalizes digital transactions.

Furthermore, Adams also pointed out the hidden costs of relying on physical cash. “Handling physical cash makes it dirty, and within the shortest possible time, that money has to be reprinted because it’s worn out,” he said. He explained that the cost of reprinting currency, which is borne by the Bank of Ghana, is much higher than the potential benefits of the E-Levy. “We end up spending more,” Adams noted, making a case for a more efficient, cashless financial system.

In closing, Adams reiterated that the E-Levy should be abolished, emphasizing that the government’s focus would be on finding a more effective and sustainable way to balance the nation’s finances. He also mentioned plans to reduce expenditures in certain areas to manage the financial situation.

Adams’ remarks underscore the ongoing debate surrounding the E-Levy, as the government continues to navigate the challenges of fiscal policy and the evolving digital economy.