Features
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
Features
Fix It Fast or Lose Them Forever: The Ever-Rising Importance of Service Recovery in Competitive Industries
Yes, in literature and in practice, differences exist regarding customer service, service failures, and service recovery.
But have you ever considered the latter (service recovery) and its potential impact on service experience, brand building, and sustainable growth?
Well, in today’s fiercely competitive service economy, customer experience has become one of the most powerful determinants of business survival and long-term success.
Across industries, from aviation and banking to telecommunications, hospitality, healthcare, retail, and digital platforms, customers now expect fast, seamless, and reliable service delivery at every touchpoint.
Yet despite technological advancements and operational improvements, service failures remain inevitable.
Systems experience downtime, deliveries are delayed, reservations are misplaced, payments fail, customer inquiries go unanswered, employees mishandle interactions, and digital platforms experience disruptions.
In the midst of these, what increasingly separates successful organisations from struggling ones is not whether failures occur, but how quickly and effectively they recover when they do.
Service Recovery
Simply put, it is the process of fixing a service problem and restoring customer confidence after a failure has occurred.
Examples of service recoveries are; an airline offering compensation after a flight delay, a telecom company restoring interrupted service and providing bonus data, a restaurant replacing a wrongly prepared meal at no extra cost, a hotel upgrading a guest’s room after a booking problem, and finally a bank reversing an erroneous transaction and apologising promptly.
As competition intensifies and customer expectations continue to rise, service recovery is rapidly evolving from a routine customer service function into a critical strategic capability.
Businesses are discovering a hard truth of the modern marketplace: fix customer problems quickly, or risk losing them permanently.
Customers are More Powerful Now Than Ever
Customers now possess more power than at any other time in business history. Digital technology, social media, online reviews, and mobile connectivity have fundamentally changed customer behaviour.
Consumers now easily compare competitors instantly, publicly share negative experiences, switch providers with ease, and influence the purchasing decisions of thousands of others online.
This evolution has made customer loyalty increasingly fragile. A single poor experience can quickly damage years of brand-building effort.
In highly competitive sectors where products and pricing are often similar, customer experience has emerged as one of the few sustainable competitive advantages.
Modern customers no longer evaluate organisations solely by product quality or pricing. Increasingly, they judge businesses by their responsiveness, reliability, transparency, empathy, and effectiveness in resolving problems.
Why Service Recovery Matters More Than Ever
Failures are no longer viewed as isolated operational incidents, especially in competitive service sectors. They are moments that directly influence customer trust, brand perception, and future purchasing behaviour.
Research across service industries consistently demonstrates that customers are often willing to forgive mistakes when organisations respond quickly, communicate honestly, show empathy, and resolve issues effectively.
Conversely, poor recovery experiences frequently create stronger dissatisfaction than the original service failure itself.
For many businesses, the greatest reputational damage does not arise from operational errors, but from delayed responses, poor communication, lack of accountability, and unresolved customer frustrations.
This has elevated service recovery into a central component of customer relationship management and competitive strategy.
Speed, a Competitive Weapon
In the modern service economy, speed is no longer merely operational efficiency; it is a basic customer expectation.
Consumers increasingly expect: immediate responses, real-time updates, fast complaint resolution, and proactive communication. Delays are often interpreted as incompetence, indifference, or organisational inefficiency.
Consequently, organisations are redesigning their service recovery frameworks to prioritize rapid intervention and customer reassurance.
A cursory assessment revealed that some businesses now operate dedicated customer experience teams, 24/7 support systems, AI-powered service platforms, automated escalation systems, and real-time issue monitoring dashboards.
The ability to resolve customer problems quickly is now a major source of competitive differentiation.
Technology Is Transforming Recovery Strategies
Technology is fundamentally reshaping how organisations manage service recovery. Across industries, companies are leveraging artificial intelligence, customer analytics, chatbots, predictive monitoring systems, and integrated digital support platforms.
These tools allow organisations to identify service failures earlier, monitor customer dissatisfaction, automate responses, personalize engagement, and accelerate resolution timelines.
Some organisations now proactively contact customers before complaints are formally lodged, using analytics to identify service disruptions in real time.
This means that the future of service recovery is increasingly preventive rather than purely reactive.
Service Recovery as a Brand Strategy
Forward-looking organisations are now treating service recovery as part of brand management strategy rather than operational damage control.
The logic is straightforward because, acquiring new customers is expensive, dissatisfied customers influence others, and loyalty is increasingly experience-driven.
Businesses are therefore measuring customer satisfaction, response times, complaint resolution rates, customer retention, and net promoter scores more aggressively than before.
In many industries, service recovery performance is now discussed at executive and board levels because of its direct relationship with profitability, reputation, and long-term growth.
A call to action
As industries become more digital, interconnected and customer-driven, service recovery will likely become even more important.
Therefore, organisations that succeed in the future will likely be those that respond rapidly, communicate transparently, empower employees, leverage technology intelligently, treat customers fairly, and place their (customers’) trust at the centre of recovery strategies.
Remember, customers now have more choices, less patience, and greater influence than ever before, a clear message to forward-looking organisations that when service breaks down, recovery is everything. Fix it fast or risk losing customers forever.
Writer: Mohammed Ali
Conflict at work is more common than you might think. According to 2022 research by The Myers-Briggs Company, more than a third of the workforce reports dealing with conflict often, very often, or all the time in the workplace.
Addressing a dispute might feel tense or awkward, but resolving the conflict is typically well worth it in the long run. Whether you are trying to mediate conflict between colleagues or are directly involved. Last week we looked at three and this week is the remaining four steps you can take to manage workplace conflict.
4. Find common ground
The best way to handle workplace conflict is to start with what you can agree on. Find common ground between the people engaging in conflict. If you are directly involved in the conflict, slow down and focus on results instead of who’s right.
If you are the mediator for conflict resolution between coworkers, observe the discussion and help point out the common ground others may not see.
5. Collectively brainstorm solutions
When deciding how to handle workplace conflict, it can be tempting to problem-solve on your own. Sometimes, it feels easier to work independently rather than collaboratively. However, if you want to achieve a lasting resolution, you will need to motivate your team to get involved.
Brainstorm possible solutions together, and solicit input from everyone involved on the pros and cons of each option until you settle on a solution that feels comfortable to everyone. This will help all team members feel a sense of ownership that can help prevent future conflicts.
6. Create an action plan
Once you have created an open dialogue around workplace conflicts, it is time to resolve them. Just like any other work goal, this requires creating a concrete plan and following through.
Create an action plan and then act on it. It does not matter what the plan is, as long as you commit to it and resolve the conflict as a result.
7. Reflect on what you learned
All conflicts offer an opportunity to grow and become a better communicator. Identify what went well and what did not.
Work with your whole team to gather learnings from the conflict so you can avoid similar situations in the future.
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