IMF bailout: will e-levy be terminated? NO – says government.

The government has clearly stated that the E-levy will not be terminated in the presence of the IMF bailout.

This was disclosed in a document containing answers to frequently asked questions as Ghana goes to the IMF. In the said document, 38 frequently asked questions were tackled.

Questions 11 and 36 were directly about the E-levy. The answers to both questions were an emphatic no with explanations.

Question 11 reads; “Will government terminate the E-levy because IMF will give Ghana
money?”

Answer: “NO. The IMF lending to Ghana will be for balance of payments support (i.e. to shore
up the international reserves). Government is committed to ensuring the smooth
operationalisation of all taxes including the e-levy to ensure that in addition to the
IMF’s resources, government can continue to support its developmental goals on its
own while ensuring that tax-to-GPD ratio increases to the peer range of 16%-18%.
An IMF-supported programme is likely to encourage the government to investigate
the factors hindering the success of the e-levy (including by providing technical
assistance if needed) and come out with strategies to improve it. Additionally, other
tax measures could be considered for the medium-term.”

Question 36 reads; “Are there any plans of cancelling the E-levy since it’s not yielding?”

Answer: “No. Despite its underperformance so far, government has been reviewing its
implementation modalities to minimize the avoidance of the e-levy by users. It is
expected that a common platform being rolled out in July will greatly boost the
collection of the levy.”

Read the full statement below:

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