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Monday, January 30, 2023

Use Mid-Year budget review to reduce E-Levy rate – Prof. Quartey – Citi Business News

Ahead of the presentation of the 2022 mid-year budget review, the Institute of Statistical, Social and Economic Research (ISSER), is calling for a reduction in the current charge rate of the Electronic Transfer Levy (E-Levy).

The presentation of the Mid-Year budget review by the Minister of Finance Ken Ofori-Atta, which is expected to come off on the 13th of July, 2022, comes as Ghana engages the International Monetary Fund (IMF) for the balance of payment support. Currently, the country’s revenue projections are underperforming while high debt levels and high expenditure continues to pose problems.

One of the sources government was hoping would help it raise much-needed revenue is the E-Levy, but information from government’s quarters indicates that it is underperforming woefully.

A leading member of the New Patriotic Party (NPP) Gabby Asare Otchere-Darko recently noted that the tax measure since its implementation has generated only 10% of estimated revenue, causing some to call for it to be scrapped.

Commenting on the E-Levy ahead of the 2022 mid-year budget presentation, Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey argued against the tax’s scrapping but called for the rate to be reduced.

“I expect the Minister of Finance to look at the E-Levy for instance as it is not yielding the needed revenue. I think we have to revise the rate downwards, even if we have to then tighten some of the concessions given to different stakeholders. So I expect the Finance Minister to reduce it, to help us raise the needed revenue.”

 

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