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E-Levy should be scrapped after going to the IMF – ACEP

Ben Boakye ACEP1212121 Benjamin Boakye, Executive Director, ACEP

Tue, 5 Jul 2022 Source: www.ghanaweb.com

Government was warned about E-Levy implementation, Boakye

Government to obtain US$2billion from IMF

Ghana in talks with IMF


Executive Director of the Africa Centre for Energy Policy, Benjamin Boakye, has opined that the electronic transfer levy must be scrapped since it does not seem to be serving the purpose of its introduction.

He stated that the government was warned against the implementation of the tax but did not pay heed to the concerns raised.

He was speaking in an interview on TV3.

“The e-levy, we told the government it wasn’t going to work from the start and they didn’t listen. It is part of the reasons why we woke up one day and we realized that we are getting 10 percent.

“If you are trying to tax the poor, they have more energy to resist, it is a pure economic fact. You rather want to help the poor to grow to become big and contribute to tax. If you check our Gross Domestic Product (GDP), 71 percent comes from the formal sector."

"So, what that tells you is that the leakages are in the formal sector, so trying to spend more money to target the 30 percent of the poor bracket, you are not going to get revenue from there. It is clear from the data which government refused to look at.”

“I think it has to go,” he stressed.

Earlier a leading member of the governing New Patriotic Party, Gabby Otchere Darko disclosed that the E-Levy was not generating the expected revenue as projected by the government.

Not long after the disclosure, it was announced by the Information Ministry that an order has been given by President Akufo-Addo for Finance Minister Ken Ofori-Atta to begin engagements with the International Monetary Fund for support.

However, Information Minister Kojo Oppong Nkrumah stated that Ghana is likely to obtain about US$2billion from the International Monetary Fund.

“Already, you recall that the finance minister initially indicated that there were arrangements to get about $2 billion, out of which there is $1 billion available. Parliament has to approve for us to receive so that the cedi does not depreciate further."

“We have a shore up of our reserves to be able to meet the liquidity and debt servicing obligations even as our domestic measures will get better. You have the window to start talking to the Fund."

SSD/FNOQ

Source: www.ghanaweb.com
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