The Finance Minister, Ken Ofori Atta says government will not terminate the 1.5% levy on electronic transactions, despite its decision to go to the International Monetary Fund (IMF) for help.
A statement from the Finance Ministry addressing pertinent questions that have arisen following the IMF announcement indicated that government will add monies from the e-levy to the IMF support to turn the economy around.
It may be recalled that government as part of campaign to encourage Ghanaians to accept the controversial levy said payment will prevent the nation from seeking an IMF bailout.
In view of this, some political pundits have asked the government to scrap the levy since it has decided to go to the Fund.
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.
Source: Peacefmonline.com
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I do not think the IMF wants countries to approach them for bailouts. They would rather be appreciative if countries could generate their own funds to solve their own problems. It would therefore appear ill-intentioned if the IMF reprimanded finance ministers in the second instance of resulting from their assistance or bailouts. It's a lazy man's approach to rush to IMF for bailouts. The able finance minister tried with the E-levy to generate funds interrnally, but unfortunately, the process is not responding quickly enough to meet the planned targets. I believe the E-levy initiative might kick in later to create additional financial space for the economy.
Mr finance minister, at least consider your age and know what is called SHAME. Barely a month ago you made the whole world to believe that going to IMF have dire consequences, you said we have the capacity and the resources only to make a U turn. No sound finance minister/ government will bank it's hope in a tax that ca easily be avoided. More so considering the controversy that the E- levy imposition generated, people felt like the Levy Es being forced down their throats. So you managed to send the horse to the river side but forgot the power to drink or not lies with the horse. If i don't send money electronically i won't pay E-levy, it's that simple. This is the price to pay for a government that doesn't listen. 70 % of the current men the NPP claim to have are a complete thrash. So where are those men and you are sending Ghana to the slaugher. You have not only disgraced yourself but the entire NPP membership. Today if you are NPP you walk with your face down. If kufour and his appointees were behaving like you are doing, will you have come to meet a formidable NPP to ride on to power? Now when you speak the people laugh and see you i.e. government appointees as concert people, Obra drama group. A party that had all the opportunity to have made history for itself but squandered the chance, the sad aspect of it all is that NPP supporters who sacrificed for the party but got nothing are being mocked in their homes, you get home and a known NDC co tenants are playing and singing nana he winner, born to succeed, we are moving forward, ye ti sika so ensu eking di ye. You know they are mocking at you but naa who cause am. A 2017 brand new elephant with very big ears , unfortunately it doesn't listen at all, see where you have landed the country making Mahama the most popular politician in Ghana today. Mmmm.
The freebies during the COVID was too much, period. It was based on the premise that you cannot restore death to life but can revive a broken economy. Now you know that bad economy also kills. Prudence is always good and Ken Ofori Atta should have taken a balanced approach but he failed.
This guy is the reason why npp will go to opposition and never be considered again to govern Ghana. He is so stoupid and headstrong. He makes nana addo looks helpless and coward. No one understands why he cannot be fired for his imcompetence.