The Member of Parliament for New Juaben South Michael Okyere Baafi says IMF could ask the government to cancel Free Senior High School Policy as part of the conditionality’s should Ghana run to the Bretton woods institution for support.
He, therefore, urged Ghanaians to accept homegrown policy intervention -electronic transaction levy (e-levy) to avert such conditionality that may be attached to IMF support for Ghana.
“One thing that we didn’t explain is that if e-Levy is not accepted and we go to World Bank or IMF for a loan to support the economy, they will tell Nana Addo Dankwa Akufo Addo to cancel the Free Senior High School education. But if Free SHS is canceled, all your children will no longer go to SHS for free” Michael Okyere Baafi said this during engagement with market women and taxi drivers on the e-levy in Koforidua on Monday, February 14, 2022.
The controversial 1.75% e-levy proposed by the government is expected to rise about Ghc6billion in tax revenue to tackle socio-economic challenges.
However, the bill is still pending due to stiff opposition against the levy by the minority in Parliament.
Many Ghanaians, business owners, and civil society organizations have also raised serious objections against the bill but the government says failure to pass the e-levy will collapse the economy since the government is not willing to go to IMF.
Michael Okyere Baafi who doubles as the deputy trade minister said the passage of the e-levy is crucial to stimulate the development of the country.
He told traders and taxi drivers in Koforidua that, Western countries have developed their countries through taxation but regrettably, Ghana with a population of about 30 million people, only 2.4 million pay tax to the government, this he said is a bad attitude which does not develop a country
He said e-levy will therefore widen the tax net for many Ghanaians to pay tax to the government to develop the country.
Okyere Baafi urged his constituents to ignore lies being peddled about the policy by the opposition National Democratic Congress, NDC, and their Minority Parliament.
Speaking to Journalists at the sidelines of the engagements, the MP stated that “I know you know that we organized the first town hall meeting in Koforidua, but then we decided to also to take other initiatives to educate our people. The people in this constituency need to understand the concept and they need to understand the policy so that patronizing the policy will be very easy. I think we have achieved that today. Everybody can attest to the fact that this section has been very successful they ask a lot of questions I can stand here and confidently say that the kind of questions that came give me an indication that they didn’t understand the concept. So I have been able to explain the concept to them and I am sure they will be able to accept it in passing the levy. Passing the levy will bring hope to Ghana as far as we know”
When asked about some of the serious concerns raises by the constituents on the levy, Michael Okyere Baafi said “basically concern about the deduction, how much will be deducted as the levy, they were concerned about whether we will be able to use the monies for the purpose for which we collect them. Most of the time we collect money and we decide to use it for a specific purpose by at the end of the day we are not able to use it for those purposes that is why people have those concerns but I have been able to explain to them further”
There was a mixed reaction by the taxi drivers and traders to the policy.
While some agreed others strongly stated their disapproval to the effect that e-levy will burden Ghanaians.
Source: Mybrytnewsroom.com/Obed Ansah
