Former Finance Minister, Seth Terkper has expressed doubt over the government’s ability to meet the revenue target of GH¢ 100 billion, despite the approval of the Electronic Transfer Levy (E-levy) law.
The implementation of the E-levy, which is expected to commence in May 2022, was originally expected to help bring in about GH¢6.9 billion this year to shore up the government’s revenue.
The total projected revenue for 2022 of GH¢100 billion, represents a 39% increase over the revised revenue target of GH¢72 billion in 2021.
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In an interview with Citi Business News, Mr. Terkper noted that the target for this year is too ambitious.
“The estimate for 2021 was GH¢72 billion. When the 2022 budget was presented, it changed to GH¢ 70 billion. The Bank of Ghana’s MPC report suggests that the revenue the country could generate in 2021 was GH¢67 billion. If it is GH¢67 then we have fallen short of the original target by about GH¢ 5 billion.”
“So the question that comes up is if all that the GRA could bring is G¢ 67 billion in 2021, and we are expecting to collect about GH¢30 billion more that represents about half of what GRA brought in last year. So you will agree with me that this year’s target is ambitious, and it includes the E-Levy,” he added.