• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, February 8, 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

Split Proposed Rate Of E-Levy Between Consumers And Telcos, IEA Urges Gov’t

March 18, 2022
Stephen KotochiebyStephen Kotochie
in Economy, One Top Story
0
Split Proposed Rate Of E-Levy Between Consumers And Telecos, IEA Urges Gov’t

Director of Research at the IEA, Dr. John Kwakye

The Institute of Economic Affairs (IEA) has urged the government to adopt urgent measures to resolve the ongoing impasse over the E‑levy in parliament, with a proposal to split the levy between telecommunication service providers and consumers.

According to the IEA, when this is done, Ghanaians, especially their representatives in parliament, will reach a consensus to allow the smooth passage of the proposed levy on electronic transactions.  

“Government must work to resolve the current budget stalemate in parliament over the E‑levy as a matter of urgency. To that end, we suggest splitting the proposed rate of 1.75 percent between telcos (1 percent) and consumers (0.75 percent). We believe this is a compromise that both the majority and minority can accept”.

IEA

Need for measures to avoid a bailout

Director of Research at the IEA, Dr. John Kwakye, advised the government to take the bull by the horn and adopt measures to address the country’s economic woes so as not to end up knocking at the doors of the International Monetary Fund (IMF) once again. Should government fail to adopt these proposed measures, the economist believes, Ghana will eventually return to the IMF for the 17th time. The consequences, he said, will be a reduced confidence by the international community in the country’s ability to manage its affairs.

RelatedPosts

Cedi Likely to Reach GH¢100 to the Dollar if Debt Restructuring Fails- A Research Fellow at IFS

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

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

Proposed measures by Dr. John Kwakye ranging from short-term to long-term that focused mainly on revenue generation included a swift passage of the Tax Exemptions bill to reduce the scope and scale of exemptions as well as the enforcement of tax compliance, especially by professionals.

Others are: introducing segregated corporate tax ranging from the current level of 25 percent for indigenous companies to 35 percent for foreign companies, as well as a temporary ‘windfall tax’ of 10 percent on ‘excess profits’ of mining companies, oil companies, telcos and banks.

Dr. John Kwakye advised that “They should also abolish the current import benchmark discount of 30 percent for general goods and 10 percent for vehicles”.

Call for measures to reduce expenditure

The IEA Director of Research further urged Government to introduce urgent measures to reduce its expenditure. He suggested restructuring and downsizing the ministries from the current 30 to a maximum of 20 – a move that would consequently see the number of ministers and their deputies drop from 86 to 56 – in addition to reducing salaries of the Executive by 20 percent.

In January this year, government announced a 20 percent cut to the budgets of ministries, departments and agencies (MDAs), as part of measures to ensure fiscal consolidation. However, an international rating agency, Moody’s, stated that this measure will be politically difficult for the government to implement but on his part, Dr. Kwakye called for its enforcement.

Excellent WASSCE results have shamed Free SHS critics

With the Minister of Finance disclosing that the Free Senior High School (SHS) had cost the nation GH¢7.62billion as of July 2021, Dr. Kwakye called for the introduction of a government-parent cost-sharing arrangement.

Amidst the growing depreciation of the cedi and the recent increments in fuel prices, there are reports in the local media that government will hold a crunch cabinet meeting to find solutions to the raging economic challenges. According to sources, the meeting will discuss whether government should continue to push through with the E-levy Bill or resort to the IMF, in the face of the current fiscal difficulties.

 This is against the backdrop that the Finance Minister had earlier indicated that going to the IMF is not an option the government is considering in response to calls by experts for the West African nation to seek an IMF bailout.

READ ALSO: Bullion Van Robbery: A Bipartisan Probe is Something I Welcome- Adam Bonaa

Tags: Dr. John Kwakyee-levyIEAIMFMDAs

Related Posts

Cedi Likely to Reach GH¢100 to the Dollar if Debt Restructuring Fails- A Research Fellow at IFS
One Top Story

Cedi Likely to Reach GH¢100 to the Dollar if Debt Restructuring Fails- A Research Fellow at IFS

February 7, 2023
Extractive Activities to Support Ghana’s Economic Rebound in 2024- IMF
Economy

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

February 3, 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

Leave a Reply Cancel reply

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

Previous Post

Bullion Van Robbery: A Bipartisan Probe is Something I Welcome- Adam Bonaa

Next Post

Trade on GSE Doubles Despite Slow Start- Ekow Afedzie

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.
Low Optimism In Ghana’s Investment Environment
Vaultz Business

Low Optimism In Ghana’s Investment Environment

by Gifty BansahFebruary 8, 2023
Upward Tariff Adjustment And Reclassification Of Bottled Water and Beverage Category, Unfair- AmCham
General News

Upward Tariff Adjustment And Reclassification Of Bottled Water and Beverage Category, Unfair- AmCham

by Angeller AshongFebruary 8, 2023
Oil Giant BP Sees Biggest Profit In 114-Year History
Extractives/Energy

Oil Giant BP Sees Biggest Profit In 114-Year History

by Stephen M.CFebruary 8, 2023
Akufo-Addo Was Not Happy With My Decision To Contest – Kennedy Agyapong
Uncategorized

Akufo-Addo’s Name Should Be In The Guinness Book Of Records – Peter Akwasi Mensah

by Samuel Yeboah OtibuFebruary 8, 2023
Illegal Mining: The Menace Is Shameful, Painful And A National Disaster – Dr Henry Lartey
General News

Illegal Mining: The Menace Is Shameful, Painful And A National Disaster – Dr Henry Lartey

by Emmanuel SarpongFebruary 8, 2023
Zelenskyy To Visit UK For First Time Since Russia’s Invasion
Europe

Zelenskyy To Visit UK For First Time Since Russia’s Invasion

by Comfort AmpomaaFebruary 8, 2023
Low Optimism In Ghana’s Investment Environment
Upward Tariff Adjustment And Reclassification Of Bottled Water and Beverage Category, Unfair- AmCham
Oil Giant BP Sees Biggest Profit In 114-Year History
Akufo-Addo Was Not Happy With My Decision To Contest – Kennedy Agyapong
Illegal Mining: The Menace Is Shameful, Painful And A National Disaster – Dr Henry Lartey
Zelenskyy To Visit UK For First Time Since Russia’s Invasion
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