E-Levy is prudent tax intervention

Minister of Finance, Ken Ofori-Atta

James Korsah-Brown, public financial adviser at the State Interest and Governance Authority (SIGA), described the electronic debit proposal in the 2022 Budget Report and Economic Policy as a prudent economic intervention to consolidate revenues.

He said the telecommunications sector remained one of the resilient sectors after the COVID-19 outbreak, which had strained many otherwise thriving revenue sources.

Korsah-Brown told the Ghanaian news agency that the telecommunications industry remains the backbone of the country’s quest to promote economic growth, as over-reliance on primary income sources has grown. proved to be insufficient.

He praised the government’s bold steps to quickly recover all income deficits to fund key activities to improve the efficiency of the macro economy.

Reinforcing his point of view, he said that mobile money transactions had increased from GH75 million? three years ago at 500 million GH? cedis last year, hence the e-tax was well thought out to accelerate development.

Regarding the government’s YouStart Initiative, Korsah-Brown said the GH ¢ 10 billion seed capital would have the capacity to create more than two million jobs for young people over the life of the project.

He said that if an average of GH ¢ 20,000 is made available to an entrepreneur, each creating 10 jobs, this represents two million jobs over the period.

“The jobs generated and people employed will create a cycle of contributing to the income pool, which will eventually improve income generation, create jobs and improve gross domestic product (GDP),” he added.

Finance Minister Ken Ofori-Atta presented the 2022 Budget and Economic Policy Statement to Parliament on Wednesday 17 November, addressing key areas such as expenditure and revenue mobilization, with the E-levy as the one of the revenue intervention measures.

Mr. Korsah-Brown hailed the government’s bold innovation measures to diversify income generation to recover from income deficits to finance key economic areas for rapid growth and development.

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