Gabby Asare Otchere-Darko, a prominent member of the New Patriotic Party, has expressed his dissatisfaction with the current status of income collection in the nation.
According to him, despite the fact that the Electronic Transfer Levy was passed in March 2022 and then implemented in May of the same year, the tax policy is only generating 10 percent of the funds that were anticipated to be generated by the government.
Gabby Asare Otchere-Darko declared on Monday, June 27, 2022, in a series of tweets that Ghana’s revenue creation is still very low in contrast to the rest of the globe.
In addition to this, he lamented the ever-increasing amount of debt, which had reached 391.9 billion Ghana cedis by the end of March 2022.
“After 5 months of stalemate and bashing, the e-levy, after implementation, is delivering only 10% of estimated revenues; our revenues remain very low as compared to the rest of the world; debt levels dangerously high, cedi, like most currencies, struggling against the US dollar,” he wrote.
President Akufo-Addo signed the E-Levy into law despite objections from Ghanaians, the minority in parliament, civil society groups, and other stakeholders.
The administration feels the tax move is vital to overcome revenue shortfalls and improve revenue mobilization and economic management, despite criticism that it is regressive and would reverse progress toward a cashless economy.
After 5 months of stalemate and bashing, the e-levy, after implementation, is delivering only 10% of estimated revenues; our revenues remain very low as compared to the rest of the world; debt levels dangerously high, cedi, like most currencies, struggling against the US dollar…
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
What options are open to government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m.
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
There’s, understandably, a national aversion to an IMF program, because of the history of conditionalities which attack sacred cows like jobs and social interventions. Akufo-Addo will not sacrifice free SHS and other critical welfare policies to help the poor for any assistance.
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
Ghana is a member of the IMF. The world is in serious crisis. Ours is not helped by our high debt and low income levels. With the economy still growing, but investor confidence low, govt being compelled to cut down capital expenditures will eventually lead to job losses unless…
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
Am I against an IMF program in principle? No.
— Gabby Otchere-Darko (@GabbyDarko) June 27, 2022
Source: TheBBCghana.Com
