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

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

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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.

E-Levy Finance Minister
Finance Minister pushed the tax through in Parliament despite fierce public opposition to the tax. Source: UGC
Source: Twitter

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.

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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.

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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%.

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).

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Source: YEN.com.gh

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