Minister for Finance, Ken Ofori-Atta has said the e-Levy being introduced by government will spur the country’s growth through entrepreneurship.
Delivering a speech at the 73rd annual New Year School on Wednesday, 26 January 2022 in Accra, being held on the theme; “COVID-19 and Socio-Economic Dynamics in Ghana”, Mr Ofori-Atta noted that the e-Levy is linked to government’s YouStart initiative and will help grow such entrepreneurship programmes.
“The E-Levy is intrinsically linked to the YouStart initiative. We consider the E-Levy an essential tool to increase our tax to GDP from around 13 per cent to 16 per cent and above,” the Finance Minister said.
He emphasised that the introduction of the levy will afford the country enough revenue to sustain investments in entrepreneurship.
Mr Ofori-Atta stated: “The E-Levy would not only ensure that we do not crowd-out the private sector by reducing borrowing, but would also ensure that we have the revenues to sustainably invest in entrepreneurship, youth employment, cyber security, digital and road infrastructure.
“The E-Levy also provides a means for all Ghanaians to help support their country and grow.”
The Minority and a cross section of the population have kicked against the e-Levy and called on the government to drop it.
However, these calls to drop the proposed tax has fallen on deaf ears.
The government has explained that the upsurge in the use of e-payment platforms, as a result of the COVID-19 pandemic, has been an impetus for the introduction of the levy.
As a result, Ghana recorded a total of GHS500 billion from e-transactions in 2020 compared with GHS78 billion in 2016.
The government says the e-Levy proceeds will be used to support entrepreneurship, youth employment, cyber security, and digital and road infrastructure, among others.