• About
  • Advertise
  • Privacy Policy
  • Contact
Friday, February 3, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

No Need For E-Levy, Let Alone A Third Party To Monitor Receipts – Dr. Salifu

December 13, 2021
Stephen KotochiebyStephen Kotochie
in Economy, One Top Story
0
No Need For E-Levy, Let Alone A Third Party To Monitor Receipts – Dr. Salifu

A Public Policy, International Relations & Migration Specialist, Dr. Kasim Salifu, has kicked against government’s plan to contract the services of a third party service provider to monitor, track and validate receipts of the proposed levy on electronic transactions (E-levy).

According to him, the Ghana Revenue Authority (GRA) has what it takes to collect the levy since it is not different from any of the existing taxes that the GRA is currently collecting for the government.

“You want to seek the services of a third party to monitor what? To me, in the first place, even if we should implement e-levy today, there is no need to contract the services of a third party to validate or monitor receipts of the E-levy.

 “GRA is well structured and they can do all those collections.  GRA has all the necessary logistics and human resource to collect this E-levy in case we are even going to agree for this E-levy to come in. This is very simple to collect, that’s why I said it’s a lazy way of getting revenues. The system is already set up, you just put in the necessary measures that’s all.

“If it is technical know-how, GRA can collaborate with the National Communication Authority, government agencies, to team up with the resources and the necessary training to collect this tax”.

Dr. Kasim Salifu

Dr. Salifu then suggested that part of the amount earmarked as e-Transaction Levy Services should rather be given to the GRA to acquire any gadgets that maybe needed to monitor and collect the levy. The Lecturer at the Simon Diedong Dombo University of Business and Integrated Development Studies emphasized that “if we are going for E-levy, we should rather allow the existing institutions to collect the tax”.  

RelatedPosts

Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF

DDEP: Deadline Further Extended To Tuesday, February 7th, 2023

Economist Advises Government to Stop Depending on Monetary Policy Rate Alone to Fight Inflation

E-Transaction Levy Services

In Appendix 4B of page 242 of the 2022 Budget Statement, government earmarked an amount of GH¢241,933,000 as e-Transaction Levy Services. This expenditure item, amid the ensuing debate on the proposed 1.75% E-levy, sparked public outcry especially from the Minority in Parliament.

Kumah pic
Dr. John Kumah

 In response, Deputy Finance Minister, John Kumah, explained that the allocation will do a number of things including payment for the services of a third party service provider who will help in monitoring, tracking and validation of all receipts that will come from the e-levy.

The GRA, according to Dr. Kumah, will also be supported from this pool since it will be provided with logistics which will help in the collection of the levy.  Hon. Samuel Okudzeto Ablakwa, MP for the North Tongu, however, suggested that instead of a nominal amount, the cost of collecting the E-levy should rather be a percentage of the amount that will be collected.

Hon Ken Ofor-Atta, Minister of Finance, disclosed that a portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure, among others. Yet, the proposed cost of collecting the e-levy is 3.5% of the projected proceeds in 2022.  Per the government’s projections, the E-levy is expected to generate GH¢6,963,386,254 in 2022 and GH¢7,888,562,147 in 2023.

1558814999397?e=1639612800&v=beta&t=MpZ6Nu5p MrYDQfVPR6pHb veeQ0zQd9IcLaZ 7imjg
Dr. Kasim Salifu

The Deputy Finance Minister, argued that “the services of the third party are required if Ghana is to optimize receipts of the E-levy”. On the contrary, Dr. Salifu told The Vaultz News that “this GHS 241 million is a way of awarding party faithful because in the budget, as at now, we don’t know who is going for this contract”.

No Need to for E-Levy

Dr. Salifu contended that there is no need to impose an E-levy at this time because of the economic hardships that Ghanaians are enduring. Just like earlier concerns raised by other experts, the Policy Analyst also indicated that introduction of the E-levy will discourage the use of MoMo which is currently gaining traction across the country. He also believes the levy will defeat government’s financial inclusion agenda as people will revert to the old ways of transacting instead of through electronic platforms.

Speaking about the rationale for the introduction of the E-levy, Dr. Kasim iterated government’s objective which is to widen the tax net. But to him, “we are not widening it; we are just lazing around”. The doggedness of the government to introduce the levy despite public outcry suggests to Dr. Kasim that government is “saying that all this while, the tax they are collecting; they are not using it for anything.  So, if they don’t get E-levy, they cannot survive”.

Though the Policy Analyst advised the government not to introduce the tax because “it’s a lazy way of getting tax revenues” and will discourage the use of MoMo, he indicated that even if government wants to go ahead to introduce the levy, it should be done at a rate of 0.05 percent. This is because “I think 1.75% is on the high side”.  He therefore, urged the government to put in place a robust system that will be efficient and fair to enable the full potential of the tax to be harnessed.

Dr. Kasim Salifu however, advised that the introduction of the e-levy should be a gradual process which should not be rushed. According to him, “we shouldn’t even introduce the e-levy looking at the current situation that we find ourselves”. Instead, he urged the government to rather seal its revenue leakages, empower the GRA to be in the position to collect more taxes, reduce its tax exemptions and cut down “unnecessary” expenditures.

READ ALSO: E-levy Has the Tendency to Collapse the Private Sector- AGI Chairman

Related Posts

Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF
Economy

Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF

February 1, 2023
DDEP: Deadline Further Extended To Tuesday, February 7th, 2023
Economy

DDEP: Deadline Further Extended To Tuesday, February 7th, 2023

February 1, 2023
Commercial High Court Orders Bank of Ghana to Produce Bank Statement of Capital Bank
Economy

Economist Advises Government to Stop Depending on Monetary Policy Rate Alone to Fight Inflation

January 31, 2023
IMF’s Conditionality Likely To Affect The Execution Of Government’s Flagship Projects
Economy

IMF’s Conditionality Likely To Affect The Execution Of Government’s Flagship Projects

February 1, 2023
BoG’s 110th MPC Meeting: MPC Increases Policy Rate To 28%
Banking

BoG’s 110th MPC Meeting: MPC Increases Policy Rate To 28%

January 30, 2023
Exclusive: Ignorance, Major Reason for Low Women Participation in Forex in Ghana- Gifty Annor-Sika
One Top Story

Government’s New Tactics of Refusing to Grant Forex Cover will not Stem FX Outflow- Forex Analyst

January 30, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Leading Variant Is The Delta Among The Communities- Dr Kuma-Aboagye

Next Post

SMEs Should Adopt Digitalization To Stay Relevant- Access Bank

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
Closing Bell: A Black Thursday for the Ghana Stock Market, GCB Falls 10%
Securities/Markets

Closing Bell: A Black Thursday for the Ghana Stock Market, GCB Falls 10%

by Stephen M.CFebruary 3, 2023
Apple Inc., Amazon Inc. and Alphabet Inc. Witness An Economic Slowdown, Revenues Slump
Innovation

Apple Inc., Amazon Inc. and Alphabet Inc. Witness An Economic Slowdown, Revenues Slump

by Priscilla Dziedzorm FiakpornuFebruary 3, 2023
DDEP: An Ample Time To Consult, Engage Stakeholders Would Have Been The Solution- Prof. Lord Mensah
Finance

DDEP: An Ample Time To Consult, Engage Stakeholders Would Have Been The Solution- Prof. Lord Mensah

by Gifty BansahFebruary 3, 2023
Akufo-Addo Ousted Charlotte Osei And 2 Deputies Only To Be Replaced With Pro-NPP Members – Mahama
General News

What Will Mahama Do Differently – Anyidoho And Ken Agyapong

by Samuel Yeboah OtibuFebruary 3, 2023
Republicans Oust Ilhan Omar From Major Committee
USA

Republicans Oust Ilhan Omar From Major Committee

by Comfort AmpomaaFebruary 3, 2023
Stonebwoy Releases Brand New Single ‘More of You’
Entertainment

Stonebwoy Releases Brand New Single ‘More of You’

by Esther Korantemaa OffeiFebruary 3, 2023
Closing Bell: A Black Thursday for the Ghana Stock Market, GCB Falls 10%
Apple Inc., Amazon Inc. and Alphabet Inc. Witness An Economic Slowdown, Revenues Slump
DDEP: An Ample Time To Consult, Engage Stakeholders Would Have Been The Solution- Prof. Lord Mensah
Akufo-Addo Ousted Charlotte Osei And 2 Deputies Only To Be Replaced With Pro-NPP Members – Mahama
Republicans Oust Ilhan Omar From Major Committee
Stonebwoy Releases Brand New Single ‘More of You’
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In