Kweku Kwarteng, the chairman of Parliament’s Finance Committee, has dismissed the idea that Ghana’s decision to seek a bailout from the International Monetary Fund will lead to the elimination of the E-levy tax.
Even though Finance Minister Ken Ofori-Atta had previously stated that the E-levy was an alternative to the IMF, Mr. Kwarteng stated that the E-levy was never suggested as an alternative.
On Eyewitness News on Friday, he predicted that the International Monetary Fund (IMF) would demand for the implementation of new levies in order to reduce government spending.
In the past, I’ve heard individuals say that an IMF program would alleviate the agony of the E-levy…. The International Monetary Fund (IMF) will arrive to begin negotiations. It’s not like they come to your country and say, “Let’s lower your taxes.” In fact, they’re likely to say that the E-levy is insufficient. According to the data, if the IMF visits your economy, they’ll tell you to stop hiring people, cut your spending, and raise your revenue.
On Friday, July 1, 2022, Ghana’s Ministry of Information stated that President Akufo-Addo has given the go-ahead for Ghana to commence talks with the International Monetary Fund (IMF). According to the ministry, Ken Ofori-Atta, Minister of Finance, would take the lead in negotiations with the IMF in the days ahead.
Since the administration had previously stated that it would never accept a loan from the International Monetary Fund, the announcement has been met with skepticism.
Ken Ofori-Atta stated that the government has decided to forego an IMF program in favor of a domestic approach.
There was an indigenous initiative that included the implementation of the E-levy, which has been claimed to have fallen short of its revenue target thus far.
There have been rumors that the E-levy may be withdrawn in light of Ghana’s upcoming meetings with the IMF, but Kwarteng disagrees.
E-levy or IMF will only be proposed by people who don’t understand how the economy works and how IMF functions. IMF or E-levy? That depends on their conditionality, which they will lay out when they arrive,” he said.