May 30, 2024 6:33 pm

E-Levy passage raises Finance Ministry’s hopes on realising GH₵80 billion local revenue projection

Deputy Finance Minister, Dr. John Amponsah Kumah, is confident the Ghana Revenue Authority’s (GRA) projected GH₵80 billion is possible with the passage of the electronic transaction (E-Levy) bill.

He says the 2022 revenue target for the GRA is GH₵81 billion and believes the GH₵ 6.9 billion to be realised from the E-Levy will make this a reality.

According to the Minister, even though several concerns were raised prior to the passage of the bill, it will give government more revenue to serve the citizenry better.

The controversial E-Levy was assented to law on Thursday, March 31, 2022 by President Addo Dankwa Akufo-Addo following its passage by Parliament on Tuesday, March 29.

It was approved after a consideration stage was completed by a Majority-sided House following a Minority caucus walkout during the proceedings.

However, the Minority has filed a suit at the Supreme Court to challenge the approval of the bill.

Speaking to Ghanasonline.com on the side line at a forum organised by IMANI Ghana on Tuesday, April 5, 2022, on the theme; Macroenvironment, an Enabler or Hammer to Attracting Investment”, Dr. Kumah said;

“E-Levy was a very critical component of our revenue measures for 2022 and so passing it means that government will now have more revenue to do more for Ghanaians. I want to assure Ghanaians that E-Levy is a positive news for Ghana” he opined.

He highlighted the levy would cover three key areas of intervention in the economy, citing job creation for the youth with the YouStart programme which government has already committed GH₵10 billion for the next three years.

Again, he noted the E-Levy would help facilitate infrastructural development such as roads and digital infrastructure which would see massive investment with regards to regular payment to contractors on time.

He further explained the E-levy is a better option to going to the International Monetary Fund (IMF) as proposed by many since it is not a loan to add up to the already rising debt of the state.

Speaking on the perception that E-Levy is barely adequate to do enough for the country, the Deputy Finance Minister said “within the year the budget we did, we strongly believe that with e-levy, we’ll raise enough revenue to meet our target. The target is to raise about GH₵80 billion in Ghana in 2022.”

Meanwhile, Dr. Kumah disclosed government’s expenditure target would not exceed GH₵7.4 billion as a deficit for the year.

Source: Samuel Nyarko//Ghanasonline.com

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