Accra, Feb. 02, GNA – President Nana Addo Dankwa Akufo-Addo says the Electronic Transaction Levy (E-Levy) is a necessary step that will provide additional financing to close the revenue gap created by the ravages of the COVID-19 pandemic.
He said it was time the country looked inward to raise money to fund its economic growth and development, and not depend on foreign grants and loans, which may not be sustainable in the long term.
Speaking on the E-Levy when a delegation from the Dzodze Traditional Area in the Volta region called on him at the Jubilee House, Accra, the President noted that the emergence of the pandemic had resulted in fiscal deficit pressures and shortfalls in revenues needed to support the country’s post Covid-19 recovery.
He said the negative social and economic impact from the COVID-19 risked reversing many of the monumental gains made by Government prior to onset of the pandemic, insisting that the Government was determined to find ways to address the revenue gaps in the 2022 budget to keep the country on the path of growth and development.
With 2020 and 2021 revenues recording unfavorable shortfalls, with accompanying economic meltdown, President Akufo-Addo said government, unavoidably, had to spend beyond its budgetary limits to provide palliatives such as free water, free electricity, and free food among others during the height of the pandemic, temporarily distorting the country’s fiscal space.
“Based on this, the gap in fiscal impact would have to be considered. These are the efforts that we are now making to raise money, which are being resisted by the opposition to try and close it down.
“It is necessary for us to do so because that is the only way in which some of these matters can be addressed. It is never going to be possible for us [Ghana] to continue to depend on foreign aid and grants to keep our economy going.
“We, ourselves must find the money for our development, and that is why it has become necessary to introduce these measures like this famous tax, which has caused so much unnecessary lively disputation…nevertheless, we would continue…I am determined to persevere to make sure that we find the means to address some of the issues,” he said.
The Delegation, led by Togbui Dey III, requested the rehabilitation and expansion of the water system in the area to meet growing demands for water, and also appealed for the construction of a new market in Dzodze and the completion and extension of the town roads.
GNA