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Gabby 'signaling the next options for the failed Akufo-Addo regime' - Manasseh

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Tue, 28 Jun 2022 Source: www.ghanaweb.com

Less than 10% expected E-Levy revenue realized

IMANI report reveals a vast reduction in electronic transfers

Government considering IMF?


Investigative journalist, Manasseh Azure Awuni has labelled leading member of the New Patriotic Party, NPP, Gabby Otchere-Darko as a 'sounding board.'

According to him, Gabby's recent economic posts were meant to communicate - unofficially - the next stance of the government relative to the Electronic Transactions Levy (E-Levy) and the decision to go to the International Monetary Fund, IMF, or not.

"Gabby "Sounding Board" Otchere-Darko is at it again, signaling the next options for the failed Akufo-Addo regime," Manasseh tweeted on June 27.

Gabby had on Monday posted a series on tweets about the economy, specifically lamenting issues around the E-Levy which was implemented in May.

He said, the tax measure implemented with the hope of turning the Ghanaian economy around, has generated less than GH¢60 million instead of GH¢600 million, has triggered many reactions.

“After 5 months of stalemate and bashing, the e-levy, after implementation, is delivering only 10% of estimated revenues; our revenues remain very low as compared to the rest of the world; debt levels dangerously high, cedi, like most currencies, struggling against the US dollar…”

“What options are open to government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m,” some of Gabby’s tweets read.

About the E-Levy

The E-Levy, 1.5% value tax on all electronic transactions above 100 Ghana cedi, was implemented by the Ghana Revenue Authority (GRA) on May 1. This was despite the numerous concerns a section of the public raised, including double taxation.

The government, however, argued that the policy was to enhance revenue mobilization, support entrepreneurship, increase Ghana’s tax-to-GDP ratio and provide an opportunity for everyone to contribute to national development.

After the policy was implemented, a number of people withdrew their monies while others ceased transactions.

A report by IMANI Centre for Policy and Education in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) on June 24, 2022, said: “About 83% or 8 in ten respondents indicated that their volume of transactions has changed since the implementation of the e-levy in May 2022. Of this number, about 47% indicated that they had reduced the number of mobile money transactions by about 51% to 100%. Our findings suggest that the official 24% attrition rate, which the government estimates for the first three to six months following the introduction of the e-levy, is likely to be much higher.”

“This finding implies that the forecasted GH¢4.5 billion (GHS¢60 million per month) e-levy revenue target for 2022 is unlikely to be attained given the strong consumer backlash and people finding alternative means of undertaking financial transactions.”

Meanwhile, GhanaWeb is accepting nominations for the prestigious GhanaWeb Excellence Awards – Youth Edition. Watch how you can nominate from the video below.

Source: www.ghanaweb.com
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