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We’ll deduct Ghc242 Million out of E-Levy to pay new company to ‘monitor’ the money – Finance Ministry confirms

The Ministry of Finance has confirmed that it has indeed contracted a Private company to “collect, track and monitor” the controversial E-Levy at a cost of Ghc242million paid to the company.

 

Deputy Minister of Finance John Kumah said the Ghc242Million will be paid to the new company for the purpose of “monitoring, tracking and validation of all the receipts that will come from the e-levy”.

According to him, Ghc242million represents “only 3.5%” of the expected revenue of Ghc6.9billion and is well in line with global averages for levy or tax cost.

He added that “the services of the third party is required if Ghana is to optimize receipts from this levy. Government learning from other experiences in other jurisdictions and our own internal processes leaves it with no room for revenue leakage and inefficient in the collection of the e-levy.” He justified.

His reaction follows the Opposition NDC’s alarm that even before the E-Levy is collected, an elaborate create, loot and share scheme worth Ghc242million has been put together for cronies when the Ghana Revenue Authority can do same work at no cost.

See the Deputy Finance Minister’s Response

RE: E-Transactions Levy Service

Yet again assigns of the opposition NDC are at it again to poison the minds of Ghanaians against the e-levy since they know very well the kind of revenue it will accrue to Government and the various projects it will be used for.

On this issue of the allocated money earmarked at Appendix 4B on page 242 of the 2022 budget, the allocated amount will do a number of things including payment for the services of a third party service provider who will help in the monitoring, tracking and validation of all the receipts that will come from the e-levy. The services of the third party is required if Ghana is to optimize receipts from this levy. Government learning from other experiences in other jurisdictions and our own internal processes leaves it with no room for revenue leakage and inefficient in the collection of the e-levy.

The GRA will also be supported from this pool since they will be  provided with logistics which will help in collection of this levy.

The process for selecting that service provider hasn’t started. It will go through the right procurement process and a value for money audit will be established before the service provider is selected.

Key point to note here is that the Government has been transparent and has gone ahead to budget for the cost that will be associated with the administration and implementation of the levy in line with international best practices.

Globally, revenue cost is pegged at 2-5% of the total revenue expected. Government is expecting GHC 6.9 billion and GHC241 million as cost of collection which is about 3.5% .

It is also important for all of us to know that this is just a budget and we may or may not use the full amount for the e-levy services.

The e-levy is a game changer and Government is resolute on ensuring that the money when collected is invested in entrepreneurship, roads and several other projects.

Source: MyNewsGh.com/2021

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