A Development Economist, Michael Adongo Ayamga has explained that the Electronic transaction Levy, when passed, will have a damning impact on the Ghanaian economy which according to him, is already in shambles.
Speaking on the DayBreak Upper East show on A1 Radio Dr. Ayamga noted that, the estimated Ghc 6.9bn that will be accrued by the government when the E-Levy is passed, cannot even begin to scratch the surface of the development deficits that the country is faced. He insisted that the controversial E-levy would rather have a negative rippling effect on the Ghanaian economy.
According to him, there are more innovative ways government can employ to raise more money to fund itself than be fixated to an estimated Ghc 6.9bn. government seeks to gain.
He stated “when you take a critical look at what the E-Levy proposes and what is there in the economy its like trying to treat an effect and not going down to the root cause. We have a huge deficit and the ghc 6.9bn government is going to raise will not even scratch the surface”.
“The impact and the ripple effects of the E-Levy are going to bite hard on Ghanaians and not only Ghanaians but the working classes leaving in the peripheries” he added.
Stressing that, the E-Levy will mop up the little profits made by businesses that do electronic transactions and “so we are looking at a situation where you’re proposing something that is not going to solve the problem but it’s effects on what is already going on will worsen, so we think that there are more innovative that Government can raise this amount of money without implementing the E-Levy “.
Meanwhile, responding to the recent cedi-to-Dollar ratio in the international market, the Economist explained that, it is due to fundamental weakness and also a negative outlook on the economy in the sight of investors.
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