“E-levy to promote political free-spending” – Economist

"E-levy will promote political free-spending" - Economist

&Quot;E-Levy Will Promote Political Free-Spending&Quot; - Economist
“E-Levy Will Promote Political Free-Spending” – Lord Mensah

Lord Mensah, an economist at the University of Ghana Business School, has dismissed allegations that the country is doomed if the Electronic Transaction Levy is not implemented (E-levy).

He believes that the country would thrive even without the e-levy.

Professor Mensah said the Finance Minister’s claim that “there will be an economic disaster if the e-levy fails to pass” is far from the reality in an interview on Joy FM’s GhanaConnect on Friday.

At a Town Hall meeting on the e-levy conducted on Thursday, Finance Minister Ken Ofori Atta warned that if the E-Levy Bill fails to pass, Ghana will face catastrophic economic consequences.

He emphasized that if Ghanaians do not support the program, the government’s recent economic accomplishments will come to a halt.

“If we don’t do this E-levy, we are just pushing ourselves in a way that would potentially end up in such a disaster. There was a warning of that because last week was a very difficult week for the country,” he said.

The Finance Minister pointed out that the country needs the levy to increase its economic fortunes; hence, Ghanaians should be passionate about the policy as “it will give us about ¢6.9 billion.”

Prof. Mensah, on the other hand, emphasized that the e-levy, “whether passed or not, will have little impact on this economy.” This, he explained, is because the economy’s expenditure has climbed by $30 billion or more and that the economy’s revenue would increase by the same amount.

He highlighted that the e-levy will merely provide a “political free space in spending,” which is why he is pushing for its approval.

“Looking at the expenditure side of the budget, I mean clearly, you would see that there are some items that have been increased, but then also there is an item called others, which is the 7 billion. Let’s say that is swallowing the proceeds from the e-levy. Now if you take this into perspective, it gives you the picture that the e-levy is something that is coming to, excuse my language, promote that kind of political free-spending,” he said.

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