Traders at the Kantamanto Market in Accra have appealed to President John Dramani Mahama to reconsider his campaign promise to scrap the Electronic Transfer Levy (E-Levy) and the COVID-19 tax.
They believe retaining the levies could support national development and aid in rebuilding critical infrastructure.
The plea came during an interview with a JoyNews reporter, who visited the market to assess progress on reconstruction efforts after a devastating fire gutted parts of Kantamanto in December 2024.
One trader passionately urged the President to keep the levies, highlighting their potential benefits for the country.
“President Mahama, we know you promised to remove the E-Levy, but we beg you, please don’t. We believe it can help the country, especially in rebuilding our market and addressing other challenges,” the trader said.
On December 15, 2024, a raging fire swept through sections of the Kantamanto Market, destroying hundreds of shops and merchandise worth millions of cedis. Traders were left devastated as their livelihoods went up in flames.
The Ghana National Fire Service struggled to contain the blaze due to challenges in accessing the site and the poor state of fire hydrants in the area.
Though no lives were lost, the incident reignited calls for better safety measures and government intervention in markets nationwide.
Since the fire, reconstruction efforts have been slow, and many traders are still waiting for promised financial and logistical support to rebuild their businesses.
The E-Levy, introduced in May 2022 by the Akufo-Addo administration, imposed a 1.5% tax on electronic transactions, including mobile money transfers.
The levy was later reduced to 1% following public outcry. Similarly, the COVID-19 levy, a 1% VAT surcharge, was initially introduced to support the country’s fight against the pandemic but was retained post-pandemic to boost government revenue.
During his 2024 campaign, President Mahama pledged to abolish both levies, describing them as burdensome and regressive. “Ghanaians are already struggling with high taxes and the cost of living. These levies only make things harder.
When elected, I will remove them,” Mahama stated at a campaign rally in Accra.
Contrary to Mahama’s campaign promise, traders at Kantamanto Market argue that retaining the levies could be beneficial if the funds are used transparently for national development.
They believe the revenue could aid the reconstruction of the market and improve other critical infrastructure.
“Why cancel it if it is helping the country? All we need is for the government to make sure the money is used properly. Our market was destroyed, and we need funds to rebuild,” another trader.
However, Finance Minister-designate Dr. Cassiel Ato Forson hinted during his vetting that the government is reviewing all taxes to ensure they align with the country’s development goals while alleviating the burden on citizens.
The E-Levy and COVID-19 Tax should not be scrapped – Trader, Kantamanto. #AMShow #JoyNew pic.twitter.com/yRYiGiFuF2
— JoyNews (@JoyNewsOnTV) January 15, 2025
