Ranking Member on Parliament’s Roads and Transport committee, Governs Agbodza says government has unfortunately revealed its true intent with the E-levy following plans to securitize revenue from the tax policy should it be passed.
For him, the country is at risk of rather becoming more debt distressed with this latest move.
“Contrary to government’s comments that E-levy is going to give us independence from the Bretton Woods institutions so that we stop borrowing, the real intention of government is to get the E-levy passed, securitize it to take bigger loans so generations beyond President Akufo-Addo are saddled with debts”, he told the media in Parliament.
Roads and Highways Minister, Kwasi Amoako-Atta, hinted on the floor of Parliament that the government may securitize proceeds from the yet-to-be approved e-levy to raise revenue to construct more roads.
“Government is looking forward to the passage of the e-levy that will bring in greater revenue that will be securitized and then used to raise bonds if possible,” Mr. Amoako-Atta announced.
That was in contrast with comments by a Deputy Minister for Finance, John Kumah denying earlier rumours that the E-levy will be used to raise bonds for the country.
The Adaklu MP believes government is not being honest with Ghanaians.
“I think it is insincerity on the part of government that is why Ghanaians are opposed to the E-levy, because there is no sincerity on the part of government.”
Responding to the Minister’s comments in Parliament, MP for Cape Coast South, Kweku Ricketts Hagan, said the Roads Minister has highlighted the real need for the controversial levy.
“As they have factored in the E-levy, the government will still be borrowing up until 2025, which is what they have in the budget.”
“They have demonstrated here today that they actually want the e-levy to go and do more borrowing,” he added.
Mr. Hagan stressed that the government would have to answer for its handling of the e-levy if it is approved.
“We want them to understand that they have to be accountable for all the things that they are doing. If not today, it will be tomorrow.”