Government has reviewed its revenue target for the controversial e-levy from the initial GHC6.9billion to GHC611 million.
This cut of almost 90% was disclosed in the 2022 mid-year policy review presented to parliament by minister of finance Ken Ofori-Atta on Monday July, 25, 2022.
The new tax which has been met with grave resistance has also been estimated to raise only GHC93.7 million out of its GHC1.46billion target for the first half of the year.
Meanwhile, former Minister for Finance, Seth Terkper, says government’s plan for revenue generation has a deficit of four billion Ghana cedis.
Speaking to Francis Abban on the Morning Starr on Tuesday, Mr. Terkper stated that all levies including Electronic Transfer Levy (E-levy) does not make any significant amount to the revenue generation bucket.
Explaining how the levy collections work, the former Finance Minister stated that “everybody is paying the import VAT, it is only those who are registered who then proceed to use the Import VAT to offset the up put VAT that they are collecting and they get an import credit or refund.”
“Even that part of it has been blocked through making the NHIL and the GETFund, another impose decision. The non-registered businesses are already paying VAT because unless the law changes. Domestic VAT is by registration, import VAT is by clarifications of goods and commodities that are coming in,” Mr. Terkper stated.
Mr Terkper said Ghanaians are paying about 13 levies under the budget.