Gov’t generated GH¢1.19bn in revenue from E-levy in 2023 – Dep. Finance Minister

On February 22, 2024, 12:04 PM

The government collected a total of GH¢1.19 billion in revenue from E-levy for the year 2023, Deputy Minister of Finance, Dr. John Kumah has disclosed.

According to Dr. Kumah, out of this sum, the government allocated funds to its YouStart Programme, the Ghana Enterprise Agency, and the National Entrepreneurship and Innovation Programme to combat unemployment in the country.

He made these remarks in response to the latest figures from the Ghana Statistical Service.

The data indicated that over a million Ghanaian youth were unemployed, during the media launch of the Wealth and Jobs Expo Ghana on February 21.

“The Ghana Statistical Service on Wednesday announced that about 1.5 million Ghanaian youth are unemployed. Last year, E-levy generated GH¢1.19 billion and as part of dealing with the job situation… unemployment situation, the government has committed funds through YouStart from this E-levy sources…to GEA and NEIP to address the unemployment situation in the country, and I am happy to announce that institutions like Wealth and Jobs Expo and all private groups that are willing to help create jobs in the private sector will also be supported to help create jobs and businesses in the private sector,” he said

He highlighted the government’s efforts in attracting investments into the country while spurring job creation, emphasizing the need for belief in entrepreneurship to address the unemployment rate.

“In the medium term, the government aims to intensify efforts to attract domestic investments and FDIs [Foreign Direct Investments] in strategic centres with emphasis on creating jobs anchored on the government’s growth strategy. The strategy is projected to contribute to the creation of approximately 500,000 jobs.

“We are not saying 1.5 million [unemployed youth], every one of them should create jobs. No. Even if we get it, we get 10% of them, it’s 150,000 who will become entrepreneurs. If they do an average of let’s say 100 jobs, 150,000 x 100, you have almost solved the unemployment problem,” Dr. Kumah added.

However, the Flagbearer of the New Patriotic Party (NPP), Dr Mahamudu Bawumia promised to abolish the tax on electronic financial transactions, popularly known as E-levy, if elected President.

Addressing the nation at the University of Professional Studies (UPSA) in Accra on Wednesday, February 7, the Vice President indicated that removing the levy will aid the government’s cashless economy agenda.

“To move towards a cashless economy, however, we have to encourage the population to use electronic payment channels. To accomplish this, there will be no taxes on digital payments under my administration. The E-levy will, therefore, be abolished,” he announced.

The E-levy, which started on Sunday, May 1 2022, saw a 1.5% but was later revised to a 1% levy on electronic transactions.

It covers mobile money payments, bank transfers, merchant payments, and inward remittances.

This move was part of the government’s efforts to broaden the country’s tax base and increase revenue mobilization.

Story By Will Agyapong