Continuation of E-Levy defeats digital agenda, suspend it – Economist tells government

Ghana in talks with IMF

E-Levy will not be scrapped despite IMF bailout, Finance Ministry

E-Levy failed to generate projected revenue, Gabby

Economist and Finance Lecturer at the University of Ghana, Prof Godfred Bokpin, has added his voice to calls for the electronic transfer levy to be scrapped.

His concern is however that the E-Levy defeats government’s digital inclusion agenda thus should be suspended especially at a time when government is seeking for an IMF bailout.

“One of the things I’m looking forward to government doing as we engage the IMF is to suspend the e-levy. Government should take advantage of the mid-year review and suspend it. And then let’s look at other compliant measures we can use to rake in a lot more money. Because the digital agenda is important,” he said in a JoyFm interview.

Meanwhile, answering the question, “Will government terminate the E-Levy because IMF will give Ghana money?, the Finance Ministry said, “NO. The IMF lending to Ghana will be for the balance of payments support (i.e., to shore up the international reserves). The government is committed to ensuring the smooth operationalization of all taxes including the e-levy to ensure that in addition to the IMF’s resources, the government can continue to support its developmental goals on its own while ensuring that the tax-to-GPD ratio increases to the peer range of 16%-18%."

The ministry added: “An IMF-supported program 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.”

SSD/MA