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Friday, August 19, 2022

Keep E-levy to assure IMF you can repay loans – government urged

This is what you will pay for MoMo transaction if e-levy is passed (Source- GBC)

An Associate Professor at Andrews University in the USA, Williams Kwasi Peprah, wants the government to maintain the Electronic Transaction Levy (E-Levy) since it will be one of the major tax tools to generate revenue for the country.

According to him, this may convince the International Monetary Fund (IMF) to give the country adequate funds to shore up its balance of payments. 

Professor Peprah is also calling for a review of government’s economic policies to correct the structural imbalances within the economy.

He tells Joy Business managers of the economy must admit that the country is experiencing a serious payment imbalance because of structural impediments, among others.

“Ghana needs to admit that it is experiencing a serious payment imbalance because of structural impediments or slow growth and an inherently weak balance of payment position. Ghana should provide a comprehensive programme including the policies needed to correct the structural imbalances over an extending period.”

He added that “the government should agree to adjust its economic policies to overcome the problem that led to seeking financial aid. And finally, Ghana’s programme should be for a maximum period of four years.”

Another important element, Dr Peprah pointed out, is a plan for the full repayment of the funds IMF will assist the country with, adding “the government should maintain the e-levy tax to give assurance to IMF that this will be the basis of making funds available to pay the fund within a maximum period of 10 years.

“This may sit well with the IMF and Ghana may qualified for Extended Facility Fund from the IMF”, he explained.


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