Repealing E-levy to Introduce Okada-Levy or Run to IMF?: Razak Kojo Opoku Writes
H. E. John Mahama at his crossroads lecture has indicated that, his next NDC Government will scrap the E-levy Act. However, he failed to tell Ghanaians how his Government will mobilize revenue in the absence of the E-levy Act to argument revenue shortfalls bearing in mind that even in 2025 Countries including Ghana will still be dealing with economic recovery post COVID-19 and Russia-Ukraine crisis plus any other unforseen circumstances.
Mr. John Mahama must rather appreciate the Government’s relentless efforts to develop all facets of the economy, using revenue accrued from the E-levy. As active citizen and not spectator, the former President should be interested in how the accrued revenue from the E-levy would be utilized for the benefit of the ordinary people. Sabotaging the E-levy for perochial interest and political expediency will not help Ghana’s post COVID-19 economic recovery programme.
Will the next NDC Government cancel E-levy to introduce which tax policy to sustain the running of the economy?
A portion of the proceeds from the E-levy will be used to support: Youth Entrepreneurship and Employment under NEIP & GEA, Roads Construction, ICT & Digital Training Programmes and Community Improvement Initiatives etc.
So in effect, scrapping the E-levy Act means that scrapping the YouStart Initiative, suspending roads construction, non or delayed payments of road contractors, and cancelation of Ghana COVID-19 Alleviation and Restructuring Entreprises Support(CARES) Obaatanpa Programme.
E-Levy Act is not about President Akufo-Addo but about the sustainability of the economy without running back to IMF or World Bank for economic bailout.
Therefore any future Government who has the ambition of scrapping the E-levy Act should be able to provide us the best alternative tax policy to sustain the running of the economy without running to IMF, World Bank and others for bailout.
It is left with 32months to the end of the tenure of Akufo-Addo’s Government. Approximately, the E-levy will be able to generate around $2.5 billion within this period. And within the next 10 years, E-levy will be able to generate around $10billion.
Which alternative tax policy to E-Levy or natural resources of Ghana will help us to generate $2.5 billion within 32 months and around $10billion within the next 10 years for national socioeconomic development? Is it Okada Levy, Loans from IMF or World Bank?