The Institute of Statistical, Social, and Economic Research (ISSER) has advised against the immediate removal of Ghana’s E-levy and COVID-19 levy, stressing that a sudden repeal could disrupt the country’s IMF Programme.
In its State of the Ghanaian Economy Report, ISSER suggests that these levies, which are projected to generate over GH¢5 billion in revenue, be gradually phased out as part of the 2025 budget instead.
Highlighting the significant revenue expected from the E-levy and COVID-19 levy—estimated at GH¢2.1 billion and GH¢3.172 billion respectively—ISSER’s report argues for a cautious approach.
“Scrap E-levy (GH¢2.1bn), COVID-19 Levy (GH¢3.172bn), Betting Tax – What is the alternative?” the report asks, urging policymakers to consider carefully how and when to eliminate these levies without jeopardising Ghana’s commitments under the IMF program.
The recommendation underscores the institute’s concern over Ghana’s fiscal stability.
“These levies should be factored into the 2025 budget but not immediately,” ISSER advises, warning that a hasty repeal could derail progress on Ghana’s IMF-backed economic recovery plan.
ISSER’s call for a phased approach reflects the delicate balance between public relief and fiscal responsibility.
With Ghana’s economy under pressure from high inflation and exchange rate depreciation, the levies provide a crucial revenue stream.
According to ISSER, the removal of these taxes should align with broader fiscal policies designed to maintain economic stability.
In addition, the report raises questions about the Betting Tax, which remains undefined but could serve as a supplementary revenue source.
ISSER encourages the government to explore such avenues as part of a comprehensive revenue strategy that can sustainably replace the E-levy and COVID-19 levy while adhering to IMF guidelines.
Latest Stories
-
AMA to temporarily close Nkrumah Avenue for urgent repair works on July 11
9 minutes -
Police probe isolated incidents of violence in Ablekuma North rerun
29 minutes -
MiDA partners with IFC to boost agribusiness in Ghana
30 minutes -
EPC contract central to gov’t’s mining agreement structure – Bright Simons
36 minutes -
Government promised to reverse new hires of civil servants – IMF reveals
37 minutes -
Poverty declined marginally in Ghana to 25.9% in 2024 – IMF
41 minutes -
Ghana’s energy sector shortfall to reach $2.2bn by December 2025 – IMF
45 minutes -
Cocoa sector witnessed improvement in late 2024; new financing model has reduced liquidity constraints – IMF
54 minutes -
Why judge decided to separate twins sentenced for stealing motorbike
1 hour -
Ablekuma North rerun violence: “I feel very unsafe” – Miracles Aboagye
1 hour -
National Ambulance Service gets new board and CEO
2 hours -
2025 Bankers Football League kicks off Saturday
2 hours -
Bright Simons accuses ECOWAS Bank of misleading public in Black Volta Gold Deal
2 hours -
Mahama appoints Dr George Kojo Owusu as Ag CEO of National Ambulance Service
2 hours -
Underdogs rise as group winners fall in UG Corporate Football League semi-finals
2 hours