E-levy: Finance Ministry Data Shows Only 6% Of Second Quarter Revenue Target Raised

• The E-Levy is not raking in the expected revenue as second quarter performance shows only a measly 6% of targets was achieved
• A target of GH¢1.5 billion was set to be generated; however, only GH¢93.7 million have been raised so far
• The E-Levy was passed in Parliament amid a major furore about its appropriateness

Despite high hopes that the E-Levy would improve revenue for Ghana’s struggling economy, the controversial tax has raked in only 6% of second quarter targets.

The second quarter (April to June) target was set at GH¢1.5 billion. However, revenue from the 1.5% tax slapped on mobile money and some selected bank transactions has raked in a measly GH¢93.7 million. This represents only 6.2% of the second quarter target.

Citing data from the Finance Ministry, Joy News reports that while the government set a target of GH¢417.8 million for only the month of June, only GH¢54.3 million was raised, representing only about 13% of the expected revenue.

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Finance Minister, Ken Ofori-Atta, pushed through the controversial tax despite widespread opposition. The minister said the tax was key to Ghana’s dwindling coffers and would step rampant borrowing.

The government had set an initial revenue target of GH¢6.9 billion by the close of 2022 but later revised this down to GH¢4.5 billion.

IMANI Ghana Survey Reveals Majority Of Ghanaians Have Reduced Volume Of Mobile Money Transactions Over E-Levy

Meanwhile, YEN.com.gh reported in a previous story that a survey by think tank IMANI Centre for Policy and Education has found that 83% or 8 in 10 Ghanaians have reduced their volume of mobile money transactions since the implementation of the e-levy on May 1, 2022.

Many of them said they have reduced the volume of their transaction by 51% to 100%.

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The study conducted in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) also suggests that many Ghanaians are likely to stay away from mobile money transactions for a long time.

Afrobarometer Report: Three Out Of Four Ghanaians Don’t Believe E-Levy Will Fund Development Programmes

Also, a new Afrobarometer survey shows three out of four Ghanaians disapprove of the recently passed electronic transaction levy (E-Levy).

Also, 76% of Ghanaians surveyed think the new tax regime is bad because it will increase the tax burden on the poor and ordinary citizens. This includes 63% who “strongly agree” with this view.

Aspects of the Round 9 (2021/2022) findings of the Afrobarometer survey on Ghana were released on Wednesday, July 13, 2022, by the Centre for Democratic Development (CDD).

Source: YEN.com.gh