Tax analyst, Francis Timore Boi, has stated that the planned removal of the Electronic Transaction levy (E-Levy), COVID-19 levy and some taxes at the country’s ports by the two political parties in their manifestos without alternative plans to boost revenue may affect the International Monetary Fund (MF) programme.
Mr. Timore Boi, pointed out at a forum that the COVID-19 levy and the E-levy, put together, were tipped to rake in about GH¢7.7 billion to the state in 2025.
Both the New Patriotic Party (NPP) and the National Democratic Congress (NDC) have promised to remove the Electronic Transaction Levy, the COVID-19 -Levy and reduce some taxes at the ports.
Mr Timore Boi said without alternative revenue generation mode, the proposed scrapping by the two major parties should be rechecked.
He said that could go contrary to the IMF programme aimed at improving revenue and redirecting government expenditure to critical areas to help alleviate poverty.
“If any policy you seek to introduce may bring down revenue, the IMF may not be happy with that. You are planning to abolish the COVID-19 Levy and the E-Levy. COVID-19 levy alone in 2025 is estimated to bring in about GH¢5.6 billion. If you take it off, how are you going to replace it? In 2025, we are expecting E-levy to give us about GH¢2.1 billion and in 2026, it is projected to increase to about GH¢2.4 billion”.
Mr Timore Boi said the political parties must provide a workable budget that will provide a foresight of how the revenue shocks that will be created will be remedied.
“It is important because the budget has not shown us that you are going to introduce new taxes,” he said.
By Samuel Boadi