Dr. Cassiel Ato Forson, a ranking member of Parliament’s Finance Committee, asserts that the implementation of the e-levy scheme has been a dismal failure.
According to him, the inability of the tax policy to generate even half of what was anticipated after a month demonstrates the magnitude of its failure.
He urges the administration to promptly sign up for an IMF program before the already catastrophic economic situation in Ghana worsens.
On the JoyNews program PM Express, he stated, “I have heard the administration say that we will not participate in an IMF program, but what are they doing?”
I am unaware of the so-called domestic policy. Isn’t your home the e-levy? You have therefore failed.
If the e-levy is your lone domestic initiative, I regret to inform you that your administration has failed, as the e-levy has been unable to meet your expectations. I say this because if you expect to earn 475 million Ghana cedis in a month but only receive 54 million, it is a catastrophic failure.
I have never witnessed a tax regime that has performed so dismally as this one. “This is the quintessential example of a nuisance tax,” he remarked.
He claimed that the poor success of the e-levy policy was a black stain on the record of the ruling party, given how comprehensive their marketing campaign was to promote the concept to Ghanaians.
We were informed that the e-levy would be the Akobam of this world, the modern-day Akobam, and that it would solve every single economic problem. Today, consider how enormously it has underperformed. “Let us recognize that this approach has failed,” he remarked.
Dr. Ato Forson said, however, that he is not shocked by the policy’s failure.
According to him, the administration neglected to account for some crucial issues that now contribute to the policy’s.
“I knew it was going to fail due to the structure and design of the e-levy; the accident we’re witnessing was inevitable.” The tax policy was designed without taking into account the fact that there are some elasticities, without taking into account the fact that demand may change because it’s a choice and the rate at which you’re increasing the rate will result in people changing their behavior in response to the tax.
I am not surprised to observe this. “
The representative for Ajumako-Enyan-Essiam claimed that the e-levy will struggle to earn 600 million of the 6.9 billion Ghana cedis it is expected to generate by the end of the year.
You may tickle yourself and create the idea that e-levy will perform coming into the line, but I can promise you that your 6.9 billion planned in the budget you’ll get, you’ll struggle to get the point nine, you won’t even get the point nine.
Your best estimate for the year will be 600 million, which means the e-levy will underperform by 6,3 billion Ghana cedis. One year, examine the void; tell me what you have to demonstrate.
“I haven’t seen anything, so let’s see what the Mid-Year Review brings,” he remarked.