Samuel Nartey George, Member of Parliament for Ningo Prampram, has said that a portion of the money targeted by the government with the E-levy would go to the Office of Government Machinery.
He said that President Nana Addo Dankwa Akufo-Addo is requesting half of the anticipated income for his office alone.
On Monday, February 21, he told Johnnie Hughes on TV3’s New Day show that the government hopes to generate $5.5 billion through the E-levy.
“Half of the E-levy is going to Office of the Government Machinery, his office is taking half of the E-levy,” he said.
The administration intends to include the E-levy policy proposal in the fiscal year 2022 budget statement. The plan has been received with strong criticism from the Minority in Parliament as well as from a segment of the Ghanaian population.
Ken Ofori-Atta, Finance Minister, is still shocked by the disagreeing voices since, in his opinion, the proposal would promote growth.
He expressed confidence that the policy would be adopted, but if it did not, he said that the government would turn to the petroleum industry for revenue.
Asked what the alternative is, in the event the E-levy fails, while speaking to journalists at a function in Accra on Friday, February 18, he said “There are always many alternatives but really, you are looking at the future and you are looking at ways we can solve the issue of the increased revenue and everybody participating.
“The challenge is, for example, assuming you earn a million cedis a year and you transfer all of that through MoMo. What am I asking of you? ¢15,000. Is that what you have been fighting against? Or if you are a student and assuming your earn 100,000 cedis, which is unlikely, that means what, a 1500 cedis.
“So you then begin to ask the question, what is it that we are fighting against? And if I have also said the first hundred cedis will not be a part of it which means 3000 monthly income.
“The alternatives are many, you can go into petroleum, but is that really what you want? The mood of the country is different from the arithmetic in Parliament and that is why I have gone around.”
Mr. Ofori-Atta has previously ruled out returning to the International Monetary Fund (IMF) for assistance in dealing with the current issues confronting the local economy.
Speaking at the 3rd Townhall meeting on the E-levy on Thursday, February 10, at the Radache Hotel in Tamale, Northern Region, he said a return to the Bretton Woods institution would be disastrous.
Instead of depending on the projected E-levy for income, the government was urged to resort to the IMF for assistance.
For example, Dr. Mark Assibey-Yeboah, a former Member of Parliament for New Juabeng South, believes that a return would help Ghana’s faltering economy.
“Without a doubt, I think we should be placing a call to Washington if we haven’t done that. We are just not going to ask for the funds just because E-levy has been passed or not. E-levy will just bring about GH¢5 billion. We are in a deep hole in our tax revenue and facing difficulties, so going to the Fund will give us some support.
“So there is nothing wrong with going to the Fund. Ghana is a member of the IMF so what is wrong going to ask for support when we are in difficulties to go and pool resources. If I was the finance minister, I will be convincing the President that it is about time we went back,” he told Citi.
Mark Assibey Yeboah also said that the income projected from the E-levy would be used to guarantee the economic stability that the government seeks.
He also questioned the government’s capacity to meet the planned GH6.9 billion objective, claiming that the government’s maximum revenue from the controversial e-levy is GH5 billion.
“The GH¢6.9 billion target cannot be realized. There are a lot of exemptions so, in my estimation, the maximum amount we can get from the E-levy is GH¢5 billion, and that is less than a billion dollars, so I do not think that the E-levy is going to be a panacea to our revenues. Going to the IMF will ensure some stability and above all, we are going to get some $3 billion”.
Johnson Asiedu Nketia, General Secretary of the National Democratic Congress (NDC), made a similar plea to the administration.
When asked whether President Nana Addo Dankwa Akufo-Addo should go to the IMF, he said on TV3’s New Day broadcast on Monday, February 7, “I think that is something that they have to consider. If it is the only that will take us out of this problem then the earlier the better.”
Mr. Ofori-Atta, who had previously indicated that the government would not return to the IMF, reiterated, “I can tell you, as my colleague deputy said, we are not going back to the IMF, whatever we do.” The consequences are dire, we are a proud nation, we have the resources, we have that capacity, don’t let anybody tell you … we are not people of short-sighted, we need to move on,” Mr. Ofori-Atta said.
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SOURCE: 3NEWS
