Deputy Finance Minister, Dr John Kumah, has revealed that the e-levy is to be a very influential tax handle for our country going into the future.
According to him, this will be evident due to the rapid digitalization of the economy and the gradual acceptance of the tax handle by Ghanaians going forward. He indicated that when the e-levy is finally viewed as a normal feature of the digital economy, the country will begin to reap the reward.
“Well, let me say that I am still very happy that Ghana managed to pass the e-levy. It’s going to be a very influential tax handle for our country going into the future. Because whether you like it or not the normal economy as we know it is shifting into digitalization, and obviously in future when things normalize.”
Dr John Kumah
Dr Kumah noted that the huge resistance to the e-levy and its impact in its implementation, was telling and the data from June showed that it started picking up by 8%, “the following month it’s going up by 10% and gradually people will come home” to accept it. This, he explained, will exhibit the real impact of the levy.”
The Deputy Finance Minister concerted that the passage of the e-levy had faced stiff opposition from Minority Members of Parliament and the general public who had described the tax measure as an “insensitive” tax measure. Nonetheless, he expressed optimism that following its full implementation, the e-levy will begin to match its expected revenue.
“Obviously, there are a number of challenges and you know we did not also implement in full, we had to do stages of implementation… Even now, as we speak, it’s not all the stakeholders who are on the common platform, and even it’s not all the transactions that are supposed to go through the common API that are currently going through.
Dr John Kumah
Cedi is third strongest currency
Commenting on the cedi, Dr John Kumah dismissed claims that the Ghana cedi is the worst performing currency in Africa. He highlighted that currencies across the world are experiencing depreciations and thus, critics of the government’s fiscal policies cannot blame the poor performing cedi on fiscal mismanagement.
“And look, I’ve heard all the propaganda, they said Ghana cedi is the worst in Africa and all kinds of things. Look, don’t believe those propaganda. I just returned from Tunisia on a programme, and Tunisia is the second strongest currency in Africa. Ghana is third actually according to any global ranking of currencies. I am talking about the strength of currencies in Africa. The Libyan Dinar, followed by Tunisian Dinar and then Ghana cedi is the third strongest currency in Africa. But maybe they were talking about the rate of depreciation.”
Dr John Kumah
Dr Kumah revealed that countries such as Nigeria is equally complaining that its Naira is not just “four hundred and something to the dollar, but sometimes it’s even 700” depending some variables. He indicated that sometimes “they can’t even find the dollar”, emphasizing that it is a global situation.
“So it is not just a Ghana situation, it is something that is happening globally and people should not begin to think that it’s as a result of some bad policy or whatever.”
Dr John Kumah
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