Former Executive Director of the Danquah Institute, Gabby Asare Otchere-Darko has bemoaned the lack of revenue options currently facing the government.
He said the underperformance of the controversial electronic levy so far indicates that Ghanaians don’t like to pay taxes.
In a series of posts on social media lamenting the poor revenue being generated from the levy, he said the e-levy is not a bad policy but the problem has to do with Ghanaians.
“If the e-levy is so far not bringing in the estimated revenues, it does not mean it is a bad tax. It means Ghanaians simply do not want to pay taxes,” he tweeted.
According to him, the tax measure has only managed to deliver on 10% of the estimated revenue target.
The leading member of the ruling New Patriotic Party (NPP) also hinted Ghana could go the International Monetary Fund for a bailout if something drastic does not happen.
While hinting at an IMF bailout programme option available to government, Gabby was quick to add that “I am not for an IMF program that throws peanuts at us but imposes conditions that will end up hurting the poor, jobs and businesses more.”
“After 5 months of stalemate and bashing, the e-levy, after implementation, is delivering only 10% of estimated revenues; our revenues remain very low as compared to the rest of the world; debt levels dangerously high, cedi, like most currencies, struggling against the US dollar,” Gabby tweeted.
In a series of tweets, Mr. Asare Otchere-Darko said the low rate at which Ghanaians are paying the levy has put government in a fix.
“What options are open to government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m”, he tweeted.
He also added: “Our economy is growing faster than most countries around the world. But, that alone can’t save us as confidence in our ability to service our debts is lowering. We can’t continue to use all the little revenues raised to pay our debts. Very soon we may have to borrow to pay wages!”