E-Levy: Kwaku Kwarteng Hints Controversial Tax Could Be Soon Withdrawn For Not Meeting Targets

E-Levy: Kwaku Kwarteng Hints Controversial Tax Could Be Soon Withdrawn For Not Meeting Targets

  • Chairman of Parliament's Finance Committee Kwaku Kwarteng has said it is premature to suggest that the E-Levy was not delivering projected revenues
  • He said if government assess the tax regime and becomes convinced that it is a failed policy, it would be withdrawn
  • In his view, the 1.5% tax policy that came into force in May 2022 has not even begun full implementation for anyone to say it was not delivering expected revenues

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A top member of the governing New Patriotic Party (NPP) in Parliament, Kwaku Kwarteng, has said the controversial E-Levy would be withdrawn if the government is convinced it is not helping.

Kwaku Kwarteng and Gabby Otchere-Darko
L-R: Kwaku Kwarteng and Gabby Otchere-Darko. Source: UGC/ Parliament of Ghana; @GabbyDarko on Twitter.
Source: UGC

The Chairman of Parliament’s Finance Committee made the comments to dismiss concerns that the 1.5% tax has not been delivering the projected revenues since implementation.

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A leading member of the governing party had caused a stir when he said since the tax policy came to force May this year, it has delivered only 10% of projected revenues.

Gabby Otchere-Darko revealed that the E-Levy had brought only GH¢60 million of the projected GH¢600 million. However, Mr Kwarteng told Joy News that the suggestion that the tax policy is not delivering is inaccurate.

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“Let us have patience. The E-Levy is a policy that went through a lot before we could pass it. Let us take our time. If, eventually, it turns out not to be a helpful policy, the government itself will withdraw.
“But now, I think it’s early days yet and please let the media not start this discussion about a big policy like this that you would say has probably failed because somehow we expected that you start the policy and immediately the money will be coming in. We’re not going to get that,” he said.

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Mr Kwarteng further explained that full implementation of the tax has not even started.

“I say that because the e-levy is supposed to be collected on an electronic platform so that if you’re paying a 100 cedis by your momo, if you try to pay the next 100 through your bank account, the system would know that you have already exhausted your threshold. That platform has not come into effect yet.
“Because it hasn’t come into effect, real time monitoring is not possible. So even the figures we are seeing, I’m not sure we have collected from all the collecting agencies. What GRA is trying to do whilst they now seek to complete the building of the platform is to let the collecting agencies to declare. When they declare (I doubt if the GRA has even had the opportunity to audit) then they will now take steps to audit. All that hasn’t happened,” he said.

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He has urged the media to restrain themselves from describing the tax policy as a failure.

E-Levy: Otchere-Darko says Ghanaians don't like paying taxes

YEN.com.gh has reported in a related story that Gabby Otchere-Darko has said the controversial E-Levy is not delivering on expected.

Mr Asare Otchere-Darko has argued on Twitter that the E-Levy was not failing to give the country the projected revenue because it was a bad tax.

“If the e-levy is so far not bringing in the estimated revenues, it does not mean it is a bad tax. It means Ghanaians simply do not want to pay taxes,” the former Executive Director of the Danquah Institute tweeted on Monday, June 27, 2022.

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Source: YEN.com.gh

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