Continuation of E-Levy will serve as assurance that Ghana can repay IMF loan - Economist

IMF begins formal engagements with government

E-Levy will not be scrapped despite decision to go to IMF

IMF to help shore up foreign reserves

Amidst calls for the scrapping of the electronic transfer levy, an associate professor at Andrews University in the USA, Williams Kwasi Peprah, has indicated that the levy should be maintained.

He explains that the revenue generation measure will serve as an assurance to the International Monetary Fund that the country is able to generate revenue internally.

He said “the government should maintain the e-levy tax to give assurance to IMF that this will be the basis of making funds available to pay the fund within a maximum period of 10 years."

“This may sit well with the IMF and Ghana may be qualified for Extended Facility Fund from the IMF”, he explained in a JoyBusiness interview.

Professor Peprah further noted that managers of the economy must make a conscious effort to address its balance of payment issues.

“Ghana needs to admit that it is experiencing a serious payment imbalance because of structural impediments or slow growth and an inherently weak balance of payment position. Ghana should provide a comprehensive program including the policies needed to correct the structural imbalances over an extending period”

He added that “the government should agree to adjust its economic policies to overcome the problem that led to seeking financial aid. And finally, Ghana’s program should be for a maximum period of four years.”

A team from the International Monetary Fund is currently in talks with the government.

The negotiations are to examine the country’s fiscal expenditure and financial projections for the year 2022.

The government has however stated that the move to go to the IMF is to help shore up the country’s reserves.

Meanwhile, the Finance Ministry in a statement said the electronic transaction levy will not be scrapped.

SSD/FNOQ