Mr. Mohammed received his salary at the end of the month. This salary had been TAXED by Government at source.
He sent 500 of his salary by mobile money to his auntie for her monthly medication. The salary was TAXED again.
His auntie used mobile money to pay for her medication. She sent 400 of her nephew’s salary to pay for her medication. The salary was TAXED again.
A friend of Mr Mohammed had asked to borrow 500 and payback in 2 weeks. Mr Mohammed sent 500 of his salary to his friend Selassie. The salary was TAXED again.
Selassie kept to his word and repaid Mr Mohammed’s money within 2 weeks as promised. The amount from Selassie, which is essentially part of the salary of Mr Mohammed was TAXED again, since Selassie used mobile-money.
Mr Mohammed gave his wife, a very hardworking housewife, the house upkeep money. His wife (Mrs Mohammed) received the money by mobile money, so as her husband’s salary moved from his phone to that of his wife in the very same house, it is TAXED again.
Mrs Mohammed purchased some household items from 3 vendors. Since she paid for each item by mobile-money, Mr Mohammed’s salary was essentially TAXED three more times as she made her purchases.
Mr Mohammed sent some “chop money” to each of his three daughters living under the same roof with him by mobile money. He was TAXED three additional times. In his home alone, he had been TAXED four times for sending money by mobile-money to family members living under the same roof.
Mr Mohammed has many other bills he pays. He was TAXED as he sent money from his salary to his landlord. He was TAXED again as he paid for the utilities in the house through mobile-money. His salary was TAXED again as he went to the laundry to pay for his work shirts.
At the end of the month, Mr Mohammed had been TAXED multiple times on a salary which had already been TAXED at source. It appears, the more one uses mobile-money the less disposable income, one has.
What do you think Mr Mohammed will do to reduce the amount of TAXES he is paying on one salary? I leave you to think about the answer.
It is also important to note that all the mobile-money transfers made by Mr Mohammed were above the tax-free threshold of 100 Ghana Cedis.
Our Government must really be in need of money to ask for some of the money a husband gives to his wife or children.
I find this particularly challenging since this Government is on record to have received more loans than all previous Governments put together. Where did the money go?
I also find it challenging because this Government has raised more revenue internally than any other previous Government. Again, where did the money go?
In 2022, we were informed that the Ghana Revenue Authority (GRA) exceeded its revenue collection targets for 2021. One may again ask where all these substantial amounts of resources are going?
An introspective response to the question….where did the money go….is critical if we are to maximize the use of the revenue from the E-levy.
The inefficiencies, leakages, over expenditures and corruption must be dealt with for Ghana to make the best use of the E-levy resources, should it become operational.
The solution to a leaking bucket cannot be the addition of more water.
The E-levy cannot and will not be the panacea to our challenges if other issues are not addressed.
May our leadership find the courage to close the multiple holes in the system. Without that, we will not achieve our dream of a productive and successful Ghana. NOW is the time to act.
Thank you
Kofi Amekudzi
