The debate about the passing of the controversial Electronic Transaction Levy (E-levy) by the government still remains unsettled after facing rejection from the Ghanaian public and the Minority caucus in Parliament.
Although the government claims the intended purpose of the new tax measure is to raise revenue to support job creation and construction of roads among others, the plan has not been given a nod.
Instead, the government has been urged to resort to the International Monetary Fund (IMF) for financial assistance to boost Ghana’s economy.
A former Deputy Minister of Finance, Cassiel Ato Forson has also backed calls for the government to turn to the International Monetary Fund (IMF) for monetary support.
Mr. Forson argued that Ghana’s economic situation will deteriorate further if the government fails to seek financial support from the IMF.
He indicated that the government’s intended plan is not viable, as the revenue expected from the tax will not be enough to revitalize the economy.
“Our debt levels are not sustainable. Our credit levels are going down. If care is not taken, Moody’s is going to downgrade Ghana further. The very IMF that they are running away from is the same institution that gave us the 2 billion US dollars in the spate of two months. We are surviving as a country because of the same IMF. The government should not think that implementing the e-levy will solve our problems. The debt levels are so high. The antidote is to go to the IMF,” he argued on Eyewitness News on Tuesday, February 1, 2022.
Dr. Forson said calls for Ghana to resort to the IMF for assistance is justified as it provides the country with a chance to return to sustainable debt levels.
“Ghana is in a mess and I can assure you that every single minute that they delay in placing that phone call [to the IMF], our economic situation deteriorates, and it is going to deteriorate further [without it]. The government must heed that advice and make that decision [to go to the IMF]. It has been long overdue.”
Rather than resorting to the IMF, the governing New Patriotic Party (NPP) says it will focus on generating revenue domestically through the implementation of the e-levy.
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