Benefits of E-levy
The government of Ghana’s revenue collection has performed poorly for some years now. Check out the benefits of E-levy
The average growth rate of total government revenue and grants has fallen sharply from 32.6% (2009-2012) to 19.9% (2013-2016) and 14.6% (2017-2020).
The total revenue as a ratio of GDP currently stands at 16%. This is lower than the sub-Saharan average of 25% of GDP.
Even if the government borrows to finance projects and programs, they will still need to mobilize revenue domestically to service and repay the debt.
The government of Ghana needs to intensify domestic revenue mobilization. It has to be very strategic and raise funds from all sectors of the economy.
One measure the government has proposed to increase revenue collection is the 1.5% tax on electronic transactions.
This proposal has been rejected by the major opposition party, the National Democratic congress, and a section of Ghanaians.
Many analysts have also criticized the policy, with some of them offering no alternatives.
The government’s reasons for the tax is that it wants to tax the incomes from Ghana’s large informal sector.
According to the 2021 population and housing census, there are about 10 million workers in Ghana.
Out of this number, 2.3 million Ghanaians work in the formal sector, and they automatically pay personal income tax.
The government finds it difficult to tax the incomes of the remaining 7.7 million workers in the informal sector”
Kindly read all the Latest News, Entertainment News and gossips here. Follow us on Facebook, Instagram, Twitter, YouTube and Telegram.