Gabby Asare Otchere-Darko, the founder of the Danquah Institute, has called for a national debate on whether Ghana should opt for the Electronic Transaction Levy (E-Levy) or a bailout by the International Monetary Fund.
This, he argues, has become crucial because the government had already budgeted partly to fund its post-COVID GhanaCARES recovery programme using proceeds from the E-Levy.
“2022 began without the usual $3bn injection of Eurobond cash. Govt’s post-COVID recovery GhanaCARES programme hinged partly on an E-levy which Parliament may not even OK. There should be a national debate: do we want IMF or E-Levy or both or none? Tough decisions confront Ghana,” Otchere-Darko tweeted on Thursday.
2022 began without the usual $3bn injection of Eurobond cash. Govt’s post-COVID recovery GhanaCARES programme hinged partly on an E-levy which Parliament may not even OK. There should be a national debate: do we want IMF or E-Levy or both or none? Tough decisions confront Ghana.
— Gabby Otchere-Darko (@GabbyDarko) March 17, 2022
Rather a lower E-Levy than an IMF bailout
Most Ghanaians will accept the Electronic Transaction Levy (E-Levy) if the government pegs the rate at 1% or 0.75% instead of the proposed rate of 1.75%, the executive director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, has suggested.
“You see, the challenge I have with the 1.75% is that when the rate is high … mind you, there are subtleties. If I can walk to the bank – if I have to pay, and I can also walk to the bank and pay cash, and I can also walk to you and give you cash – … it depends on the volume, [but] I will substitute and will not use it,” Quartey told Asaase Radio when he featured on TownHall Talk with Kofi Abotsi on Friday (11 March 2022).
“I want a situation where you fix a rate … so if the rate is not too high, a lot of people will use it and you are likely to get more revenue. If you peg it at 1.75% we will look at alternatives and perhaps that might not work in your interest.
“If you speak to the average user of this MoMo and all that, the 1.75% is too high. The government could do something about it. Perhaps you start from 1% or 0.75%,” Quartey said.
Don’t go to the IMF
The ISSER director said he supports the introduction of the E-Levy, rather than turning to the IMF for a bailout.
“I think we should look more into that, and I believe Ghanaians will support the E-Levy. I will support the E-Levy rather than going to the IMF.”
Watch the full interview on TownHall Talk in the clip attached below:
Fred Dzakpata
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