A member of the New Patriotic Party and a close ally of the executive, Gabby Asare Otchere-Darko, has lamented the deficient performance of the electronic transaction levy (e-levy) since its implementation, contributing to dipping government revenues.
In a tweet on Monday, Mr. Otchere-Darko revealed that “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”, adding that the “E-levy, which was to have given us some 600m by now, has done less than 60m.”
He noted that while the global economy is in turmoil, occassioned mainly by the COVID-19 and the Russian-Ukraine war, Ghana’s plight has been worsened by high debt levels, resulting in low investor confidence.
While highlighting some positive interventions by the government, such as the expanding road network, expanding access to technical and vocational skills, and relative food stability, he stated that the country’s rising debt levels, low revenue to GDP ratio, inflation, and sinking investor confidence have left the country with few options, including the much-talked-about IMF program.
“Ghana has no food crisis, enough food from our farms, yet food prices have shot up 3-4 times more in our cities, far & over above rising cost of transportation. To make matters worse, global food insecurity is worsening as inflation, from challenges with supply chain, worsens, ” he stated.
Mr. Otchere-Darko mentioned further that “Our economy is growing faster than most countries around the world. However, that alone can’t save us as confidence in our ability to service our debts is lowering. We can’t continue to use all the little revenues raised to pay our debts. Very soon we may have to borrow to pay wages!”
He noted that even though he is not against the IMF bailout in principle, what he is against is the conditionalities it comes with, including the cancellation of critical social intervention programs, and disclosed that President Akufo-Addo is still committed to continuing all social intervention programs such as the Free SHS.
According to him, “There’s, understandably, a national aversion to an IMF program, because of the history of conditionalities which attack sacred cows like jobs and social interventions. Akufo-Addo will not sacrifice free SHS and other critical welfare policies to help the poor with any assistance…. Am I against an IMF program in principle? No”.
The government, prior to its implementation of the e-levy, suggested that the country would be better off implementing the tax rather than going to the International Fund (IMF), estimating about GHC 4.5 billion in revenue annually.
Last week, economic and political research outfit, IMANI, called on the government to revise downward the 1.5% e-levy rate to rope in more Ghanaians.
A member of the New Patriotic Party and a close ally of the executive, Gabby Asare Otchere-Darko, has lamented the deficient performance of the electronic transaction levy (e-levy) since its implementation, contributing to dipping government revenues.
In a tweet on Monday, Mr. Otchere-Darko revealed that “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”, adding that the “E-levy, which was to have given us some 600m by now, has done less than 60m.”
He noted that while the global economy is in turmoil, occassioned mainly by the COVID-19 and the Russian-Ukraine war, Ghana’s plight has been worsened by high debt levels, resulting in low investor confidence.
While highlighting some positive interventions by the government, such as the expanding road network, expanding access to technical and vocational skills, and relative food stability, he stated that the country’s rising debt levels, low revenue to GDP ratio, inflation, and sinking investor confidence have left the country with few options, including the much-talked-about IMF program.
“Ghana has no food crisis, enough food from our farms, yet food prices have shot up 3-4 times more in our cities, far & over above rising cost of transportation. To make matters worse, global food insecurity is worsening as inflation, from challenges with supply chain, worsens, ” he stated.
Mr. Otchere-Darko mentioned further that “Our economy is growing faster than most countries around the world. However, that alone can’t save us as confidence in our ability to service our debts is lowering. We can’t continue to use all the little revenues raised to pay our debts. Very soon we may have to borrow to pay wages!”
He noted that even though he is not against the IMF bailout in principle, what he is against is the conditionalities it comes with, including the cancellation of critical social intervention programs, and disclosed that President Akufo-Addo is still committed to continuing all social intervention programs such as the Free SHS.
According to him, “There’s, understandably, a national aversion to an IMF program, because of the history of conditionalities which attack sacred cows like jobs and social interventions. Akufo-Addo will not sacrifice free SHS and other critical welfare policies to help the poor with any assistance…. Am I against an IMF program in principle? No”.
The government, prior to its implementation of the e-levy, suggested that the country would be better off implementing the tax rather than going to the International Monetary Fund (IMF), projecting about GHC 4.5 billion in revenue annually.
Last week, economic and political research outfit, IMANI, called on the government to revise downward the 1.5% e-levy rate to rope in more Ghanaians.
