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Govt won’t scrap E-Levy despite IMF Bailout – Finance Minister

Despite its decision to request assistance from the International Monetary Fund (IMF), the government will not abolish the 1.5 percent surcharge on electronic transactions, according to Finance Minister Ken Ofori Atta.
According to statement from the Finance Ministry responding to pertinent queries raised in the wake of the IMF announcement, the government will supplement the IMF’s assistance for the economy’s recovery with funds from the e-levy.
Govt won’t scrap E-Levy despite IMF Bailout – Finance Minister
Recall that the administration said that accepting the contentious charge would prevent Ghana from requesting bailout from the IMF. This was part of campaign to persuade Ghanaians to do so.
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Given that the government has chosen to donate the money to the Fund, several political commentators have urged it to abandon the charge.

The Member of Parliament for North Tongu constituency, Samuel Okudjeto Ablakwa said: “You gave Ghanaians two options: E-Levy or IMF. Having opted for the IMF, any honest government will scrap the unconstitutional and repugnant E-Levy immediately”.

It’s a NO, NO

However, government says NO

According to the Finance Ministry’s statement, “the IMF lending to Ghana will be for balance of payments support (i.e. to shore up the international reserves).

“Government is committed to ensuring the smooth operationalisation of all taxes including the e-levy to ensure that in addition to the IMF’s resources, government can continue to support its developmental goals on its own while ensuring that tax-to-GPD ratio increases to the peer range of 16%-18%.

An IMF-supported programme is likely to encourage the government to investigate the factors hindering the success of the e-levy (including by providing technical assistance if needed) and come out with strategies to improve it. Additionally, other tax measures could be considered for the medium-term” the statement added.

 

 

Akosua Boatemaa

I'm Yours Truly, Blogger Akosua Boatemaa. I'm here to feed Your eyes and Ears with Authentic News Updates.

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