By: Kekeli K. Blamey
The Institute of Statistical, Social, and Economic Research (ISSER) has advised the government to adopt a phased approach to scrapping Ghana’s E-levy and COVID-19 levy.
According to ISSER, suddenly removing these levies could disrupt Ghana’s IMF Programme.
ISSER’s recommendation is based on the significant revenue expected from these levies, estimated at GH¢5 billion, with the E-levy generating GH¢2.1 billion and the COVID-19 levy generating GH¢3.172 billion.
The institute emphasizes the need for policymakers to carefully consider how and when to eliminate these levies without jeopardizing Ghana’s commitments under the IMF program.
ISSER’s primary concern is Ghana’s fiscal stability, particularly given the country’s struggles with high inflation and exchange rate depreciation.
The levies provide a crucial revenue stream, and ISSER suggests that their removal should align with broader fiscal policies designed to maintain economic stability.
The institute’s report questions the removal of these taxes without alternative revenue sources, asking, “Scrap E-levy (GH¢2.1bn), COVID-19 Levy (GH¢3.172bn), Betting Tax – What is the alternative?”
ISSER advises factoring these levies into the 2025 budget but not removing them immediately.
By adopting a cautious approach, ISSER aims to strike a balance between public relief and fiscal responsibility, ensuring Ghana’s economic recovery remains on track.
The government is encouraged to explore supplementary revenue sources, such as the Betting Tax, as part of a comprehensive revenue strategy.
