Deputy Minister of Finance, Dr John Kumah has hinted at an accelerated road infrastructure development with the introduction of the electronic transaction levy.

In an interaction on PM Express on Thursday, Mr Kumah revealed that the tax, otherwise known as E-levy, would be aggressively used to construct roads in the country.

“We are going to see aggressive construction of roads especially with this e-levy,” he told host, George Wiafe.

According to him, an amount of GHS6.9 billion would be expected in the first year of implementation.

He further noted that a consultation would be held to vary on how the e-levy tax would be implemented and applied.

He stated that road constructors would be excited about the development because the accumulated funds from the e-levy would be used pay them for their services, adding that there would be no more delays in the payment processes.

“If you look at the quantum of funds that are coming, I can assure you, contractors in Ghana especially Road contractors and all other areas will be happy,” he indicated.

This comes after the Finance Minister announced the introduction of the levy in the 2022 budget statement to increase revenue.

“The government will charge an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient,” Ken Ofori-Atta announced.

But this announcement has engendered a widespread public debate.

Also, touching on the government’s 'YouStart' initiative, which is directed to help address challenges regarding access to credit faced by young entrepreneurs in the country, Dr Kumah noted that “this is the first time that young people in this country have heard good news of government commitment not just in words but in financial allocation of about 10 billion.”

The Deputy Minister added that the funds of ‘YouStart’ will be disbursed through the banks.

He, therefore, encouraged the youth to tap into the funding arrangements in order to create their own jobs.

Under a new programme ‘YouthStart’, government will direct financial and technical support towards young entrepreneurs in the country to develop commercially viable businesses and create jobs for the youth.