Dr Adu Sarkodie: Economist Urges Ghanaians To Embrace Payment Of New E-Levy, VAT Rates To Restore Economy

• A renowned economist has appealed to Ghanaians to embrace the payments of taxes as captured in the 2023 budget statement, and economic policy document of the Akufo-Addo-led government
• Dr Adu Sarkodie says the government is broke at the moment; hence Ghanaians should also contribute their quota
• Dr Sarkodie said such tax measures are in interim moves by the government to get the economy back on its feet

Embrace taxes introduced in the 2023 Budget statement and economic policy of the Akufo-Addo-led government.

That’s the appeal from a renowned economist to Ghanaians.

Economist Backs New Tax Measures In 2023 Budget; Says It Will Help To Revive The Economy

According to Dr Adu Sarkodie, the proposal for reducing the controversial Electronic Transfer Levy (E-Levy) charge from 1.5 per cent to 1 per cent and the increment in the Value Added Tax (VAT) rate of 2.5 per cent forms part of measures taken to revive the economy.

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Minority in parliament demands review of E-Levy rate to 0.5% with Gh¢300 daily threshold

Explaining further, he said the current dire financial straits of the government behove the ordinary Ghanaian to contribute his quota to bounce the economy back on a healthy foot.

Economist Says New Tax Measures Will Positively Impact LEAP, Free SHS, Other Pro-Poor Policies

“The government is facing serious fiscal challenges. So, in my view, this VAT and the present state of e-levy will be the short-term revenue measures for the government,” he opined.

He also added that should the new e-levy be rolled out, it will positively impact the Livelihood Economic Empowerment Programme (LEAP), Capitation Grant, School Feeding, the Free Senior High School (SHS) and other policy interventions.

2023 Budget: Finance Minister Announces 2.5% Increase In VAT To Support Roads And Digitalisation Agenda

Earlier, YEN.com.gh reported that the government had announced an increment in the Value Added Tax (VAT) rate by 2.5%. According to the finance minister, Ken Ofori-Atta, the move is necessary as it will help the government’s massive infrastructural drive.

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2023 Budget: Abossey Okai spare parts dealers unhappy with 2.5% increment in VAT rate

Presenting the 2023 budget on Thursday, November 24, 2022, Ofori-Atta announced several measures being put in place to ensure the country moves from its current financial crisis.

In justifying the VAT rate, which has been increased by 2.5 per cent, the minister said it would directly support the construction of roads in the country and the digitalization agenda of the NPP government.

Source: YEN.com.gh