Third party required for collection of E-Levy but process for selection hasn't started - Kuma

Deputy Finance Minister, John Kumah has reacted to claims by Samuel Okudzeto Ablakwa, the MP for North Tongu that the government intends to GHS241,933,000 to the “special company” “which government intends to put in charge of the obnoxious E-Levy, you need to take into consideration that the create, loot and keep booty is much bigger than the entire allocation” of some ministries.

He claims that the government is planning to steal from the Ghanaian people and the most heartless plot ever hatched by any government to extort from the poor and enrich a few family and friends.

“Thank God for the vigilance that has led us to an early discovery of this grand scheme to create, loot and keep.

Now, let us wage the battle of our lives to defeat the cruel E-Levy and to foil this e-Robbery,” he wrote.

But reaching, Mr. Kumah noted that the processes in selecting the service provider for the implementation of the collection of the levy have not started.

He said the selection of the service provider will go through the right procurement processes.

“The process for selecting that service provider hasn’t started. It will go through the right procurement process and a value for money audit will be established before the service provider is selected.

Key point to note here is that the Government has been transparent and has gone ahead to budget for the cost that will be associated with the administration and implementation of the levy in line with international best practices.

Globally, revenue cost is pegged at 2-5% of the total revenue expected. Government is expecting GHC 6.9 billion and GHC241 million as cost of collection which is about 3.5%.”

Read the statement below:

RE: E-Transactions Levy Service

Yet again assigns of the opposition NDC are at it again to poison the minds of Ghanaians against the e-levy since they know very buy validation of all the receipts that will come from the e-levy. The services of the third party is required if Ghana is to optimize receipts from this levy. Government learning from other experiences in other jurisdictions and our own internal processes leaves it with no room for revenue leakage and inefficient in the collection of the e-levy.

The GRA will also be supported from this pool since they will be provided with logistics which will help in collection of this levy.

The process for selecting that service provider hasn’t started. It will go through the right procurement process and a value for money audit will be established before the service provider is selected.

Key point to note here is that the Government has been transparent and has gone ahead to budget for the cost that will be associated with the administration and implementation of the levy in line with international best practices.

Globally, revenue cost is pegged at 2-5% of the total revenue expected. Government is expecting GHC 6.9 billion and GHC241 million as cost of collection which is about 3.5%.

It is also important for all of us to know that this is just a budget and we may or may not use the full amount for the e-levy services.

The e-levy is a game changer and Government is resolute on ensuring that the money when collected is invested in entrepreneurship, roads and several other projects.