The Impact of Electronic Transaction Tax on Developing Countries: A Case of Ghana

Premised on the assertion that financial digitalization is currently the panacea and game-changer in delivering progress in emerging economies through universal financial inclusion, the purpose of this paper is to establish the effect of transaction tax in Ghana.The paper argues that developing economies, especially Ghana should participate and continue to engage with citizens to deal with the challenges of the digital economy.In Ghana, electronic transactions pose a threat to the government as sellers sell goods and services without having a significant physical presence and also do not correspond to the existing threshold under current tax rules.The paper found that transaction tax exemptions on digital financial innovations such as mobile money services can stimulate economic growth through an increased level of financial inclusion labelled as the main enabler for digital services.Ghanaians have mixed perceptions concerning the electronic transaction tax (e-levy).The study gave recommendations based on the findings.