Former NPP Member Challenges Bawumia's E-Levy Repeal Pledge Amid IMF Collateral Concerns

Written by Afua Amankwanowa

Hopeson Adorye, a former member of the New Patriotic Party (NPP), has taken a firm stance, urging Ghanaians to dismiss Dr. Mahamudu Bawumia's assurance of scrapping the e-levy if he assumes the presidency. Adorye asserts that the government has leveraged the e-levy and other taxes as collateral for securing an International Monetary Fund (IMF) bailout, resulting in a substantial infusion of US$1.2 billion across two tranches. According to Adorye, Bawumia's vow to abolish the e-levy is deceptive and politically motivated, designed to sway voters, as these tax measures are intricately tied to the IMF agreement, extending until 2026.

He emphasizes that despite initial backlash, the government introduced the e-levy in May 2022 as part of a broader strategy to enhance domestic revenue mobilization, albeit later revising it from 1.5% to 1%. In direct opposition to Bawumia's pledge, Adorye contends that the commitment to repeal the e-levy and other taxes remains untenable due to their integral role as collateral in the IMF deal. Moreover, he challenges Bawumia to demonstrate his purported resolve by initiating the repeal of these taxes immediately, highlighting the implausibility of such actions given their contractual obligations.

Against this backdrop, Bawumia, the NPP's presidential candidate, unveiled his electoral promise in early February 2024, vowing to dismantle the e-levy alongside three other tax measures introduced during the tenure of Nana Addo Dankwa Akufo-Addo's administration if elected to the presidency. However, Adorye's remarks cast doubt on the feasibility of such commitments, raising questions about the practicality and legitimacy of Bawumia's electoral platform amidst the broader economic and political landscape of Ghana.