The Economist Intelligence Unit (EIU) made positive projections about the country’s political landscape in its latest five-year forecast.
According to EIU, despite the country’s “very acrimonious political landscape”, it expects the sector to be stable throughout the period.
“The fierce rivalry between the two main parties – the ruling New Patriotic Party (NPP) and the National Democratic Congress (NDC) – will remain the centerpiece of the political scene,” the London-based organization noted.
Highlighting the NPP-led parliament, EIU further observed that reaching consensus on some policies, especially taxes and reforms, will be very tumultuous.
Taking the controversial electronic transfer tax (E-levy) as an example, economic observers have said
“In November 2021, the minority government rejected the 2022 budget bill regarding the introduction of an electronic transaction tax (e-levy); this was later reversed and the Budget Bill 2022 was passed by an NPP-led majority, but without the electronic levy clause,” he recounted.
Electronic direct debit
Electronic direct debit was first mentioned by Finance Minister Ken Ofori-Atta during the presentation of the 2022 budget in November 2021.
He explained that the “innovative” tax will expand the government’s revenue generation basket.
However, tax policy has generated much controversy in parliaments and among citizens.
While the Majority Caucus said it would propel Ghana’s development, economists and the minority in Parliament said the Levy would only intensify the hardships of average Ghanaians.
But after nearly three months of back and forth, including fistfights between parliamentarians, the E-Levy Bill was passed by the majority parliament on Tuesday, March 29.
The Levy passed at a reduced rate of 1.5% from the original 1.75% amid a minority walkout.