Govt reviews e-levy projections from ¢6.9 billion to ¢611 million for 2022

According to the Ministry, the government is expecting GHS611 million from the earlier projected $1.6 billion.

This was disclosed by the Minister of Finance, Ken Ofori-Atta, when he presented the mid-year budget review in Parliament.

Regarding Value Added Tax (VAT) the expected revenue has been adjusted upwards from the initial ¢14,534,864,446 to ¢15,402,925,770.

Gabby Asare Otchere-Darko, a leading member of the New Patriotic Party (NPP) had earlier stated that the e-levy is underperforming.

He said the Nana Addo Dankwa Akufo-Addo government has so far realized 10% of the estimated revenue.

In a series of tweets, Asare Otchere-Darko said the low rate at which Ghanaians were paying the levy had put the government in a fix.

Ken Ofori-Atta Pulse Ghana

“What options are open to government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m”, he tweeted.

He also added: “Our economy is growing faster than most countries around the world. But, that alone can’t save us as confidence in our ability to service our debts is lowering. We can’t continue to use all the little revenues raised to pay our debts. Very soon we may have to borrow to pay wages!”

The former Executive Director’s concerns about the levy reverses the optimism expressed by government appointees and communicators before it was passed.