Professor Peter Quartey
DIRECTOR of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey has called for a reduction in the current charges of the Electronic Transfer Levy (E-Levy) which is pegged at 1.75 per cent.
There had been calls by sections of the public for the levy to be scrapped especially as Ghana engages the International Monetary Fund (IMF) for what the government has described as “balance of payment support”.
A leading member of the ruling New Patriotic Party (NPP), Gabby Asare Otchere-Darko, in a post on his personal Twitter handle, also indicated that the tax, since its implementation, has generated only 10% of the estimated revenue, causing many Ghanaians to call for its abolishment.
However, the ISSER boss, speaking ahead of the presentation of the 2022 mid-year budget review which is expected to come off tomorrow [July 13, 2022] held the view that government should rather reduce the charges instead of scraping it off.
According to him, that move would help the government to raise the needed revenue even if it means the government tightening some of the concessions given to stakeholders.
“I expect the Minister of Finance to look at the E-Levy for instance as it is not yielding the needed revenue. I think we have to revise the rate downwards, even if we have to tighten some of the concessions given to different stakeholders. So I expect the Finance Minister to reduce it, to help us raise the needed revenue.”
The presentation of the Mid-Year budget review by the Minister of Finance Ken Ofori-Atta comes as Ghana engages the IMF for what government for a loan to help revive the country’s ailing economy.
Currently, Ghana’s revenue projections are underperforming, while high debt levels and high expenditure continue to plague the economy.
The government had implemented the e-levy with the hope of raising some revenue internally to cushion the economy but information from the government’s quarters indicates that the levy was performing woefully.
By Nii Adjei Mensahfio