Ken Ofori-Atta
MINISTER OF Finance, Ken Ofori-Atta, has said that the federal government is really excited in regards to the Digital Switch Levy (E-Levy), which is a brand new tax deal with to take a look at problems with curing possibility failures in rising the nation’s income mobilisation.
In line with him, the E-Levy can be a part of efforts in steadily getting expertise into the Ghanaian economic system through which individuals don’t use simply money, as a result of it’s a lot simpler to proceed the transfer for expertise.
Talking at a press briefing organised by the Ministry of Info in Accra yesterday, Mr. Ofori-Atta stated, “It’s an thrilling interval of getting a structural answer to income mobilisation in a manner that we haven’t had earlier than.”
Deficit
“We’re, as a matter of truth, operating a price range deficit which primarily couldn’t be addressed. Our revenues are under our expenditure, and that’s the reason the intervention of the E-Levy was so necessary,” he defined.
The Finance Minister asserted that he was very assured that the E-Levy “opens a complete new visa for our tax handles in a manner through which all Ghanaians may even be paying one thing.”
“We’re really enthusiastic about this new tax deal with to take a look at problems with curing possibility failures in rising our income mobilisation, and getting expertise steadily into an economic system through which, actually, individuals don’t use simply money, as a result of it’s a lot simpler to proceed our transfer for expertise,” he emphasised.
Issues Beneath Management
He acknowledged that there might be challenges within the implementation of the tax because it entails expertise, saying, “I don’t know of any programme which entails expertise that won’t have teething issues. However definitely, the cataclysmic pronunciation by our individuals on the opposite facet just isn’t occurring.”
“I believe we just about have it beneath management as a lot as we are able to. We began on Might 1, and we have been blessed with that being a interval of vacation – three, 4 days, and so we noticed the problems and commenced to sort out them.
“There’ll proceed to be some technical points, however definitely will probably be meager than what was pronounced for us,” he asserted, and added that he was of the view that Ghana is transferring ahead.
“We now have found a tax deal with which does two issues – one from GHȼ78 billion of cellular cash transfers to perhaps nearly a GHȼ1 trillion final yr, and subsequently you start to see how e-commerce and expertise develop into efficient that will probably be good for the nation.
“And secondly, the sense of unfairness, some 2.4 million individuals are paying taxes as a result of they’re within the formal sector and no person else is paying, bringing everyone else onboard as small as will probably be,” he said.
Regressive
“However we additionally have been clear on the problem of regressive taxes, which says that you simply don’t over tax the poor, and so the primary GHȼ100 just isn’t being levied, and that’s about GHȼ3,000 a month in impact,” minister stated.
He continued, “We all know our salaries are usually not that prime. So really, most of these folks that advocate that it’s regressive taxes are usually not affected in any respect. And when you have GHȼ200, I’m positive you are able to do that in two days, and subsequently, there will probably be a zero affect.”
Property Tax
Mr. Ofori-Atta disclosed that the federal government would quickly roll out a pilot section of the property taxes to double its income to GDP ratios from the area of 13% and 14%.
No IMF
Mr. Ofori-Atta insisted that Ghana wouldn’t return to the Worldwide Financial Fund (IMF) for coverage credibility and help to cope with the present challenges of the economic system.
He famous that the Bretton Woods Establishment is conscious that “Ghana is totally in the precise path with regard to the inner measures and insurance policies launched to cope with the basic points affecting the economic system.”
In line with him, the Akufo-Addo authorities has put in place correct measures to convey the economic system again on its toes, explaining that despite the fact that Ghana is a member of the fund, the nation has the capability to assume via the consolidation train and be self-disciplined, with out requiring IMF.
“We’re members of the fund. There are two main factors of interventions that we have now from the fund. One being the recommendation that we get due to the exceptional experience that the fund has and secondly, these programme interventions which convey us some sources,” he famous.
“I believe, if you happen to see from the price range that we constructed for 2022, and the next announcement that we have now performed, clearly, the problem of Ghana having the capability to assume via the consolidation train exists. Additionally, self-discipline itself with reference to the 20%, and that we have now proven clearly (sic).
“We now have dedicated to not going again to the fund as a result of when it comes to the interventions and coverage we’re proper there. The fund is aware of that we’re fully in the precise path. The problem is, validating the programmes that we have now put in place after which, in my opinion, supporting us to search out other ways of financing or refinancing our debt – thus re-profiling it,” he careworn.
BY Ernest Kofi Adu & Vincent Kubi
