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Business News Sun, 22 May 2022

NDC will scrap E-Levy with ease – Isaac Adongo backs John Mahama

National Democratic Congress (NDC) Member of Parliament for Bolgatanga Central Constituency Isaac Adongo says a future government under the NDC will scrap the newly introduced Electronic Transfer Levy (E-Levy) with ease.

The government commenced the implementation of the controversial e-levy on May 1, 2022, despite widespread rejection of the policy.

The levy was reduced from 1.75% to 1.5% after several protests and passed under controversial circumstances by Parliament.

The National Democratic Congress through former President John Dramani Mahama who is seeking to be elected again in 2024 has served notice of his resolve to crush the tax policy.

“A new National Democratic Congress government, God willing, and with the votes of the sovereign people of Ghana in 2025, will repeal the E-levy Act,” John Dramani Mahama said in an address to the nation.

Speaking on Dreamz Fm’s State of Our Nation Show in Bolgatanga monitored by MyNewsGh.com, Isaac Adongo reiterated the promise of the former President.

He argued that the pronouncement of the former President was based on data available that points to inordinate expenditure by government to the tune of over GH¢30 billion.

He said “We have scaled up our expenditure by close to GH¢30 to GH¢40 billion. That expenditure was occasioned by the additional and other expenses we needed to make in order to deal with COVID-19-related expenses."

Adongo continued, "Beyond COVID-19 we had no business still having an expenditure of GH¢30 billion in our expenditure framework. You are not questioning GH¢30 billion that doesn’t belong in our expenditure but you are asking GH¢4.5 billion [E-Levy] that will not even be realised as to why we will scrap it and not why we need to eliminate GH¢30 billion in our framework?”

Mr Adongo stressed that the National Democratic Congress is positive that scrapping the E-Levy will not distort the government’s ability to fund its budget if it is minded to take out some needless additional cost that has bloated the 2022 budget.

He sighted an allocation of GH¢1 billion to be given to Ghana Amalgamated Trust Fund, 1 billion for the government’s GhanaCares Obaatampa program amongst other allocations which can be thrashed to create fiscal space and do away with E-Levy.

“No matter what sensitivity analysis we do, e-levy cannot give us 1 billion cedis a year and I have shown you unnecessary expenditures in excess of 5 billion. So taking off 1 billion cedis revenue and finding appropriate alignment cannot be a difficult task” the lawmaker stated.

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Source: mynewsgh.com
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