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Is E-levy the best way to go? What other ways can we generate revenue as a country?

The public discussion on E-levy is still on going .The Electronic levy refers to tax charged on digital transactions. The country's minority group in parliament have passionately disagreed with this kind of tax proposal and have refused to vote in favour of it.

In a TV3 interview with the member of parliament and Former Deputy Minister of Trade, Hon. Murtala Mohammed, the MP mentioned that the E-levy was a way of taxing already taxed incomes of citizens . He noted that Ghanaians are not willing to welcome such a levy and they would oppose it no matter how the E- levy is "bathed" or "coated" .

In another TV discussion with Dr. Antoinette Tsiboe-Darko, who is currently the Executive Director of the Danquah Institute , she gave some solid analysis of the President's Independence Day Address in relation to the E-levy .

According to the academician who had schooled in Norway, the President's Independence Speech was to give hope to Ghanaians , assuring the citizens that despite the effects of the covid 19, things would get better and she encouraged citizens to support the country's e-levy. Sequel with the President's 2022 Independence Day speech , "our GDP of 12.97 percent compares unfavorably to our peers . She supported the President's speech that only a few people contribute to taxes out of the 30.8million citizens of Ghana and the E-levy is a way of getting all on board in the payment of taxes .

The dialogue on the E-levy should be encouraged for a congenial consensus . In Fact , a business consultant, Kwame Okyere Darko has also mentioned the momo figures for which GHS 6.9billion was budgeted as E-levy revenue, do not add up . He explained that Ghanaians have never opposed the payment of taxes except that the expected figures and other analysis did not make any meaning.

This article will tackle three alternatives that can help the country to generate adequate revenue.

In the first place , the budgeted expenditure must be pruned in order to match the available revenues. There is a popular adage , " cut your coat according to your size " and this should be the way to go. In fact, the entire country can not bank all our hopes on the E-levy's projected revenue . What if this stream of income does not provide the projected cashflows ? Besides, the Auditor General has unraveled some expenditures that must be disallowed and recovered . In my opinion , such disallowed expenditures can also be pursued to help accomplish some projects.

Secondly, the huge amount of exemptions and reliefs extended to foreign companies should be reduced or cancelled to help the country meet some urgent statutory needs . These foreign investors must understand the situation of the country and honour their tax obligations since some might even have sent some local businesses out of operations due to unfavourable competition.

Finally , the country should close the loopholes in our existing revenue collection strategies . We need to exhaust the collection of withholding taxes, rent income taxes, property taxes , corporate and personal taxes to help the country collect adequate revenues.

Kindly follow JUKELAFRICA for more exciting articles . We wish all Ghanaians a fruitful Ghana month as well as a Happy Independence Celebration ! "As we celebrate 65 years of independence, let us build stronger ties and improve our economy to move further together in Ghana's growth and prosperity. Cheers to all our cherished readers . We love you !

Content created and supplied by: JUKELAFRICA (via Opera News )

Antoinette Tsiboe-Darko Danquah Institute E-levy Murtala Mohammed TV3


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