Introducing electronic transaction levy in Ghana: A possible curse or a blessing? The public’s perception
Date
2023
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Abstract
This study seeks to determine Ghanaians’ perceptions of the new electronic transaction levy (E-levy) and the impact of their perception on their intention
to use electronic transactions (ETs) that attract the levy, financial inclusion (FI) and
financial well-being (FW). To achieve this, the study employs PLS-SEM with a sample
size of 782. Generally, we found Ghanaians have limited knowledge on E-levy. Thus,
Ghanaians should be re-educated about E-levy. We again document that the per ception of Ghanaians towards E-levy is negative. Also, we found most Ghanaians
intend to reduce their patronage of ETs that attract levy. Furthermore, Ghanaians’
perception of the E-levy reduces their intention to use ETs that are affected by the
levy and, by extension, adversely affect FI and FW. Hence, based on the perception
of Ghanaians, the E-levy introduced is a curse. We recommend that the government
of Ghana review the E-levy policy to minimize its negative effects. We specifically
suggest that government raise the GH¢100 per day transaction exemption thresh old to increase the intention to use ETs and FI; moreover, government can exempt
businesses that pay income tax from E-levy to reduce the tax burden on their
income. Also, government should re-enlighten the public on the benefits of E-levy to
the country, reassuring the public of accountability and honesty in implementing
the E-levy policy to increase their intention to patronize ETs that attract levy. Again,
we record a significant and positive total effect of FI on FW. Thus, additionally,
government should introduce policies that ensure FI.
Description
Research Article
Keywords
levy on electronic transactions, perception of Ghanaian, intention to use, financial inclusion, financial well-being
Citation
To cite this article: Victoria Nutassey, Samuel Agyei, Siaw Frimpong & Kaku NoKoe (2023) Introducing electronic transaction levy in Ghana: A possible curse or a blessing? The public’s perception, Cogent Economics & Finance, 11:1, 2167361, DOI: 10.1080/23322039.2023.2167361