Former Finance Minister, Seth Terkper has expressed doubt over the government’s ability to meet the revenue target of GH¢ 100 billion, despite the approval of the Electronic Transfer Levy (E-levy) law.
The implementation of the E-levy, which is expected to commence in May 2022, was originally expected to help bring in about GH¢ 6.9 billion this year to shore up the government’s revenue.
The total projected revenue for 2022 of GH¢ 100 billion, represents a 39% increase over the revised revenue target of GH¢ 72 billion in 2021.
Mr Terkper who made the remark in an interview noted that the target for this year was too ambitious.
“The estimate for 2021 was GH¢ 72 billion. When the 2022 budget was presented, it changed to GH¢ 70 billion. The Bank of Ghana’s MPC report suggests that the revenue the country could generate in 2021 was GH¢ 67 billion. If it is GH¢ 67 then we have fallen short of the original target by about GH¢ 5 billion.”
“So the question that comes up is if all that the GRA could bring is GH¢ 67 billion in 2021, and we are expecting to collect about GH¢ 30 billion more that represents about half of what GRA brought in last year. So you will agree with me that this year’s target is ambitious, and it includes the E-Levy,” he added.
Parliament on Tuesday, March 29, 2022, approved the Electronic Transfer Levy Bill (E-Levy), 2021, paving the way for the government to rake in about GH¢6.9 billion in revenue this year.
The bill, which imposes a 1.5 per cent tax on all electronic and mobile money transfers, was approved by 137 Majority Members of Parliament (MPs).
The rate is a downward revision from the initially proposed 1.75 per cent.
The approval came after the 137 MPs of the Minority side of Parliament staged a walkout of the Chamber, on the grounds that they did not want to be associated with any further proceedings on or approval of the bill, which was being considered under a certificate of urgency.
The walkout came after the House had concluded the debate on the bill and the Speaker was to put the question on the motion for the adoption of the Finance Committee’s report in 2.4 million, approximately eight per cent of the population, were registered as personal income taxpayers.
President Nana Addo Dankwa Akufo-Addo assented to the Electronic Transfer Levy Bill (E-Levy) Bill into law on Thursday, March 31, 2022, just before the start of the Cabinet meeting at the Jubilee House in Accra.
By appending his signature to the bill, it has now become law, but the operational date and other activities were announced by the Minister of Finance, Ken Ofori-Atta to begin in May 2022.