Partisanship, Ethnicity and Tax Policy Perceptions: Investigating Public Responses to Ghana's E‐Levy

ABSTRACT This study examines the determinants of public opinion on Ghana's electronic transaction levy (E‐Levy), focusing on party politics and ethnic identity roles. The E‐Levy, introduced in 2022, imposed a 1.75% tax on electronic transactions, sparking a nationwide debate. A review of E‐Levy implementation across Africa revealed mixed outcomes, with some countries facing public resistance and revenue shortfalls. In Ghana, the E‐Levy became a divisive political issue, supported by the ruling New Patriotic Party (NPP) and the opposition, the National Democratic Congress (NDC). Evidence suggests that party affiliation and ethnicity significantly influence public attitudes towards the E‐Levy. The study employed a quantitative research design, using secondary survey data from the Afrobarometer Round 9 Survey. Regression analysis indicates that NPP supporters exhibit more favourable views of the E‐Levy than NDC supporters. However, ethnicity was not a statistically significant predictor when controlling for other factors. The findings highlight the importance of partisan affiliation in shaping policy attitudes and the need for cross‐party dialogue regarding major economic policies. This study contributes to understanding of the dynamics that influence public opinion on taxation in Ghana and similar contexts.