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IMF Bailout: Government won’t abort E-levy — Finance Ministry

IMF Bailout: Government won’t abort E-levy — Finance Ministry

The Ministry of Finance has said government will not scrap the E-levy despite its shortcomings.

The E-levy before the passage was touted by government as the ‘saviour’ of the ailing economy than an IMF bailout.

In a statement released by the Ministry, it indicated that government is committed to ensuring that all taxes are in full roll-out in addition to the IMF resources.

According to the Ministry, the IMF support will only be for balance of payment to shore up the international reserves.

The Ministry noted that an IMF programme will request an investigation into why the E-levy is not succeeding and come out with strategies to improve it.

“Will government terminate the E-levy because IMF will give Ghana money?

“NO. The IMF lending to Ghana will be for balance of payments support (i.e. to shore up the international reserves). Government is committed to ensuring the smooth operationalization of all taxes including the e-levy to ensure that in addition to the IMF’s resources, government can continue to support its developmental goals on its own while ensuring that tax-to-GPD ratio increases to the peer range of 16%-18%. An IMF-supported programme is likely to encourage the government to investigate the factors hindering the success of the e-levy (including by providing technical assistance if needed) and come out with strategies to improve it. Additionally, other tax measures could be considered for the medium-term,” government said in response to the frequently asked questions.

On June 27, NPP stalwart, Gabby Otchere-Darko took to Twitter to lament that government was generating just 10% of the expected revenue.

Subsequently on July 1, it was announced that the President had directed the Finance Minister to begin engagements with the IMF for a bailout.

Meanwhile, Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa has asked govenrment to apologise to Ghanaians and terminate the E-levy since it has failed to save Ghana from going to the IMF.

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