The Dean of the Business School at the University of Cape Coast (UCC) in the Central Region, Prof. John Gatsi, has justified the repeal of the E-Levy, asserting that savings from President John Mahama’s lean government will offset any revenue shortfall.

His remarks follow a pre-budget survey by auditing firm KPMG, which estimated that Ghana could lose approximately GH¢6.4 billion in revenue if the government eliminates the COVID-19 levy and the E-Levy in the 2025 budget.

Prof. Gatsi emphasized that the government's decision to reduce the number of ministries from 30 to 23 is a significant expenditure cut that will contribute to bridging the revenue gap.

"Nobody can tell me that reducing ministries is not a cost-saving measure.

If someone argues otherwise, I have a problem with that," he stressed.

He also pointed out that streamlining appointments at the Presidency would further reduce government expenditure, a stark contrast to the previous administration, which he described as having an "elephant-sized" number of appointees.

Prof. Gatsi argued that removing certain taxes is not necessarily a revenue loss but rather a move to enhance tax compliance and ease the burden on businesses and citizens.

His comments come after Parliament approved the repeal of the E-Levy on Wednesday, pending presidential assent.

He spoke in an interview on Accra-based Kessben FM