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A chevy of a levy
Chevrolet, (pronounced sher-vro-lay), is an American car from the stable of General Motors, (GM). Its short form is Chevy, (pronounced sher-vy). Interestingly, both its full name and short form are real words in Spanish and English respectively, with some fascinating connotations. According to the online Word Magic English-Spanish Dictionary, Chevrolet in Spanish means persecution. In English, the short form, chevy, means persecution as well, with synonyms such as torment, irritation, annoyance, nag, badger, heat, pursuit, chase, or harass.
Sometimes, it is spelt chivvy which means to obtain by small manoeuvres. Another meaning attributed to the word is confusion. It is also listed as a crossword-clue for an act of pursuing with an effort to overtake or capture. In short, it implies going after with the intent to catch.
Whatever meaning is adopted for the full form or the shorter version of the word, one thing is certain. It has elements of a pursuit, irritation, and confusion in it. The Electronic Transaction Levy (commonly known as Electronic Levy or E-Levy) proposed by the Government of Ghana seems to be one chevy of a levy, what, with all the confusion surrounding it and the schemes to push it down the throats of Ghanaians? Its discussion has even led to a nasty brawl in parliament. Now, you understand why I call it a chevy of a levy. It has already led to irritation, chaos, and disagreements.
The levy, pegged at 1.75 per cent on all electronic transactions in the informal sector, was proposed on November 17, 2021, by the Minister of Finance, Mr. Ken Ofori-Atta during the presentation of the 2022 budget. Transactions above GH¢100.00 will be affected and areas to be captured under the levy include the following:
- All inward remittances (which would be paid by the recipient)
- All person-to-person mobile transactions (which includes sending of funds to another account, payment for goods and services, payment of utilities
- All POS/Merchant payments.(POS means Point of Sale), that is, the place where a transaction takes place. It may be virtual or real.
The minister said the policy would not only widen the tax net but could generate about $1.15 billion to be used for the payment of contractors in Ghana. Besides, revenue from the levy would provide funds to support entrepreneurship, cyber and digital security; road infrastructure and job creation for about 11 million people in the country, as well as help reduce borrowing and the national debt.
He justified the introduction of the levy with the explanation that the COVID-19 pandemic has led to an increase in the use of digital platforms for transactions. That rationalisation is tantamount to turning the already impoverished masses into easy prey to make a quick buck.
The Government should be told in no uncertain terms that you cannot eat your cake and have it. Were we not told that Ghana was gearing towards a cashless economy, and that digitisation was the tool to achieve that? Why then should there be a tax on digitisation improvement? This ambivalence could be suicidal, defeatist, and counter-productive.
Truth be told, no nation can develop without relying on some form of taxation. Economic experts stress that Africa’s development is stifled by certain critical deficits which, if not addressed, would continue to impede the continent’s advancement. They include low access to healthcare together with poor service, high illiteracy rate as well as poor quality of education and inadequate energy supply to fuel industrialisation, add value to primary products, boost exports and reduce imports.
Without doubt, education remains the backbone of sustainable development. That is why the introduction of the Free Senior High School by the Government must be lauded. Though fraught with a lot of difficulties, it is a step in the right direction. It only needs fine-tuning which must be done with consultation, not unilaterally. With time, the benefits will be self-evident through the skills acquired and increased productivity among other things.
Not much can be said for the energy sector. For a country with so much promise in the immediate post-independence era even without oil, we still lag behind big time as far as our energy generation is concerned. Some efforts have been made to reduce the deficit, but major investments must be made in alternative sources like solar and wind to address the shortfall and help meet the country’s sustainable development goals.
Another vital area of concern that the experts blame for the continent’s lack of development is the deficit in domestic revenue mobilisation which has long starved Africa of vital funds needed to sponsor spending and various public expenditures at various levels of development – national, regional, and district.
It takes taxation to meet those goals. But when individuals and corporate entities transfer their wealth to the government this way, they do so with the understanding that the money will be used in the most judicious manner to improve the general well-being of the people.
In fact, the inflows we receive from the advanced countries in the form of aid, loans and foreign direct investments are made possible through taxation. Their tax to GDP ratio is way higher than Africa in general and Ghana in particular. The tax to GDP ratio is the contribution of taxes to the country’s total monetary or market value of its finished products and services within a year
It is agreed that at around 12 per cent, Ghana’s tax to GDP ratio is lower than the 16.5 per cent average for Sub-Saharan Africa recommended as the minimum threshold for a fairly healthy economy. Available records indicate that as of August 2021, only 2.4 million, (13.3per cent) out ofabout 18 million potential income taxpayers, were registered as personal income taxpayers.
Meanwhile, only 45,109 entities are reported to be registered as corporate taxpayers while 54,364 persons are registered as self-employed taxpayers at the Ghana Revenue Authority. On the other hand, there are about 17 million registered voters and about 19 million active mobile money accounts. That obviously makes Ghana’s economy a very informal one and that does not conduce to effective mobilisation of personal income tax through the P.A.Y.E. system as pertains in developed countries. The statistics do not look good for development.
It is against this backdrop that the Government sees the E-Levy as an opportunity to make up lost ground. In the Minister’s calculation, the E-Levy, if passed as proposed, would widen the tax base in the medium term and increase the country’s tax to Gross Domestic Ratio (GDP) to 16.5 per cent and subsequently to 20 per cent, “as pertains among our peers.”
Very lofty and laudable ideas if you asked me! But for Ghana, and most African countries, the problem is not so much the lack of resources as our own doing. Mismanagement, corruption, misplaced priorities, insensitivity to the plight of the masses and a host of other self-imposed burdens have conspired to put the gear of progress in reverse.
The Akans have a proverb that: “3mmoa a, omo kՉՉ adidie mmae a, y3nnka bi nnkՉgu mu.” That translates loosely to: “It is unwise to send more cattle out for grazing if the previous herd has not returned home.”
For a start, the levy should be pegged at one per cent given the fairly large size of the cohort of the population projected to be targeted. Besides, we must be meticulously prudent in managing the money and have verifiable evidence of the proper allocation of resources earmarked for the various sectors of our development plan. The advanced countries do it so well that they can squeeze a substantial chunk for us and still manage their health services, education, energy, infrastructure, and housing very well.
Not so in our part of the world where we can collect road tolls for decades yet cannot show concretely how roads benefitted from such tolls. Now, we are told that the toll has been scrapped but only God knows how it will resurrect in one form or another.
In recent times, how many new taxes have been introduced or are to be introduced? I mean the VAT FLAT RATE SCHEME,(VFRS), introduced for retailers and wholesalers at three per cent; VAT withholding, COVID-19 Health Levy adding one percentage point to both VFRS and NHIL, and others? Some have been scrapped but it is like “robbing Peter to pay Paul”.
Ghana needs the money to fast-track its economic transformation. But for this to happen, people have to be healthy, trained to acquire skills, live in decent housing, have access to affordable means of transportation as well as get credit. These are the things that developed countries ensure for their people through the taxes they collect. And these are integral to any development agenda planned for Ghana.
Contact: teepeejubilee@yahoo.co.uk
By Tony Prempeh
When Abigail Fremah steps up to the Armwrestling table, the noise fades, the tension settles, and order takes over.
Despite a calm, but firm and meticulous disposition, she has become one of the quiet forces shaping Ghana’s growing reputation in the sport, not as an athlete, but a referee trusted on the continental stage.
Abigail’s journey into Armwrestling did not begin at the table. Like many Ghanaian sports enthusiasts, she grew up playing several disciplines. Football was her first love, but she also featured in volleyball and basketball during her school years. Sports, she says, was simply a way of life not just for her.
“It runs through the family. All my siblings are into sports,” she stated.
“I was involved in almost every sport in school, football, volleyball, netball, hockey; I did everything,” she recalls.
Her academic background in Health, Physical Education and Recreation laid a solid foundation for her sporting career. While on scholarship at the university (University of Cape Coast), she often used her modest budget to support young athletes, sometimes sharing skills and even T-shirts at programmes she attended. Giving back, she explains, has always been part of her motivation.
However, as she matured as an athlete, Abigail made a critical self-assessment.
“Armwrestling involves a lot of strength,” she admits. “Looking at my body type, I realised I couldn’t fit properly as a competitive athlete.”
That moment of honesty pushed her to a different trajectory but equally important path in sports; which is officiating.
During her National Service, she was encouraged by Mr Charles Osei Asibey, the President of the Ghana Armwrestling Federation (GAF), to consider officiating. He introduced her to a technical official, Mr Hussein Akuerteh Addy, who formally took her through the basics of Armwrestling officiating in 2021.
“I started as a case official,” she says. “We moved from region to region every week, officiating competitions. That’s where it all began.”
By 2022, Abigail was actively involved in national assignments, though she missed the African Championship that year. Her breakthrough came in 2023, when Ghana hosted the African Armwrestling Championship.
It was her first experience officiating at a major international competition and it changed everything.
“That was my first national and international exposure at the same time,” she says. “It really opened my eyes.”
Today, Abigail is a World Junior Armwrestling Referee, a status earned through performance, consistency and discipline. She explains that progression in officiating was not automatic.
“It’s all about performance, your appearance at African Championships, your conduct, how you handle pressure; that’s what takes you to the world level,” she stressed.
As a referee, Abigail’s priority is safety and fairness. Armwrestling, she notes, comes with risks, particularly injuries to the wrists, elbows, shoulders and arms.
“If athletes don’t follow the rules or refuse to listen to officials, injuries can happen,” she explains, adding that focus was everything.
Before every match, she ensures that all equipment which includes elbow pads, hand pegs and table alignment were properly set. Athletes are not allowed to cover their elbows, must grip correctly, and must follow the referee’s commands precisely.
“We make sure everything is fixed before the grip,” she says. “Once we say ‘Ready… Go’, there should be no confusion.”
She is also firm on discipline. Warnings are issued for infractions, and repeated misconduct attracts penalties.
“The referee must be respected, if you don’t listen, the rules will deal with you,” she says.
Abigail credits her confidence partly to her sporting family background. Her mother was a volleyball player, while other family members also participated in sports. Though they were initially concerned about her safety, her rise to the top reassured them.
“They were afraid at first,” she admits. “But they were also very proud, especially because some of them never got the opportunity to reach this level.”
Looking ahead, Abigail is optimistic about the future of Armwrestling in Ghana. In less than a decade, the country has produced African and world-level medalists, a sign, she believes, of great things to come for Ghana.
“Whenever we go out, we come back with medals such as gold and silver,” she says, and to her that was a sign of growth.
In the next five to ten years, Abigail sees herself rising to become a World Master Referee, the highest officiating level in the sport. Until then, her routine remains intense, training four times a week, working closely with athletes, standing on her feet for hours, and constantly refining her understanding of the rules.
“I love this sport,” she says simply. “That love is what keeps me going.”
Abigail encouraged women to be bold and intentional about their place in sports saying “don’t limit yourself because of fear or stereotypes.”
She also urged women to invest in learning, discipline and consistency, stressing that respect was earned through performance.
For Abigail, as Ghana’s armwrestlers continue to make their mark, she will remain where she is most effective at the table, ensuring the game is played right.
By Esinam Jemima Kuatsinu
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As he had promised Aperkeh, the elderly man and his wife and three daughters stopped by Aperkeh’s parents’ house. Mr Amando and his family were preparing to settle in for the night.
“Brother Ben and family”, Mr Joshua Amando said warmly, “although I know you are here on a matter that can hardly be described as joyous, it is still good to see you. You are welcome. Please sit down while I bring you water”.
“Yes, we will take water, even though we are hardly thirsty, because this is our home”.
“Okay, Ben”, he started after they had drank, “Let me go straight to the point. My daughter Priscilla has told me about the goings on between her brother Aperkeh and our daughter Stella.
Before informing me, Priscilla had expressed concern to Aperkeh about some habits he is adopting, especially the late nights and the drinking. She tells me that one Saturday morning, she was there when Stella complained about his drinking and some girls who had come to the house to look for him, and he assaulted her.
I called him and complained, but all he could say was that I don’t know what caused him to react that way, so I could not judge him. Now he does not answer my calls.
I have sent Priscilla to his house to call him, but he has refused to come. Unfortunately, Ben, my son is a much different person than the young boy who completed university and started work at the bank. I am really embarrassed about his treatment of Stella”.
“Joshua, let me assure you that even though what is happening is very unfortunate, it will not affect our relationship.
We have been friends since childhood, and I thought that with their parents’ blessing, the relationship between Aperkeh and Stella would grow to become a blessing to all of us. But there appears to be a real challenge now.
Stella thinks that Aperkeh wants her out of his house, and indeed Aperkeh himself told me that, about an hour ago.
So I’m taking my daughter home. I suggest that you do what you can to straighten him out, but if it does not work out, let’s accept the situation and continue to be one family.
I am sure that being the well behaved girl that she is, Stella will meet a young man who will cherish her. Fortunately, this problem is happening early in the day, so they can sort things out if possible, or move on with their lives if they are unable to stay together”.
“I’m really grateful for that, Ben. I will do my best in the next few days to reason with him, because apart from the relationship with Stella, Aperkeh is risking his job and career with this lifestyle.
A good job and salary offers an opportunity to gather momentum in life, not to destroy yourself”.
“Okay Brother Joshua. We will say goodnight. I hope to hear positive news from you”.
As he descended in the lift from the fourth to the ground floor, Aperkeh wondered who would be waiting at the reception to see him at nine on Monday morning. He had spent good time with both of his new girls during the weekend, so it had to be someone else. He got out of the lift and pulled a face when he saw Priscilla.
“Priscilla”, he said as he sat down by her, “what do you want here? You know Monday morning is a busy time at the bank. I am a very busy person, so say what you want, I have work to do”.
“You are very funny, Aperkeh. You are telling me, your sister, that you have work to do, so I should hurry up? Okay, Dad says I should advise you to come home tonight, because he wants to discuss the issue of Stella with you. He sent me to you twice, and you did not come.
He has tried to call you quite a number of times, but you have refused to answer his calls. He says that if you do not come tonight, you will be very surprised at what he will do. He says you will not like it at all, so better come.
“What is all this? Why won’t you people leave me alone? Stella is very disrespectful. I told her that if she wanted to continue to live in my house, she must obey me. It is that simple.
She chose to continue ordering me about, controlling me in my own house, so I told her that if she could not live under my conditions she should leave. And she left. In fact, her own father came and took her away. So what again?’’
“How did she disobey or control you? Was she complaining about your continuous drinking and late nights? And did you slap her on several occasions because of that? Did you tell her that if she could not live under your conditions she should leave? You actually said that to her father? You have forgotten that before she came to live with you, our two parents met and agreed, and gave it their blessing?’
“Why don’t you leave, Priscilla? I don’t have to listen to all that”. “Okay, I will go. Your father who gave birth to you and educated you to university level sends me to you, and you ask me to leave? I wish you would defy him, and refuse to come home as he’s telling you, because he is planning to give you the discipline you badly need. Let me tell you. Stella is such a beautiful and decent girl, and I assure you that someone will grab her before you say Jack. You are only 30 years old, and you have already become a drunkard”.
As he walked towards the lift, Aperkeh decided on what to do. He would go home, and calmly listen to what his father had to say. The old man was very unpredictable, and he wouldn’t dare ignore him. So he would take all the insults and threats, but as for Stella she was history. According to Priscilla, Stella was beautiful and all that, but she had not seen the two curvaceous princesses who were all over him, ready to do anything he asked. And these were not barely literate waakye girls, but university graduates from wealthy homes, really classy girls. With stuff like that, who needs a waakye girl? He smiled as he took his seat.
A few minutes to five, Aperkeh was packing up to leave for home to meet his dad when his phone rang. It was Priscilla.
“Aperkeh, Dad says you don’t need to bother to come. Stella’s dad says she came to him early this morning to plead that she would rather stay at home than return to your house. She thinks you are already decided to be rid of her, and she does not want to risk being assaulted again. So it’s done. You can go ahead and enjoy the nice life you have started”.
Before he could tell her to go to hell, Priscilla hanged up the line. He was partially stung that his dad had virtually cut him off. The last thing anyone would want was to fall out of relationship with his own family, which had always supported him.
But the truth was he was no longer interested in Stella. What was wrong with going by one’s feelings? He could only hope that one day, his parents and sister would try to reason with him.
By Ekow de Heer
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