Use E-levy proceeds for it’s purpose – Economist tells government

With the E-levy finally approved, the government must make sure that the proceeds are used for the purpose for which the policy was introduced, a Professor at the University of Ghana Business School, Lord Mensah has said.

Speaking on the News @10 on TV3 Wednesday, March 30, he said “we don’t expect that whatever proceeds that will come out from the E-levy we will not use it as it is supposed to be.”

He further asked Ghanaians to consider the E-levy as a policy that has come to stay irrespective of how they feel about its approval.

“I think there is going to be that response where people will stop using the platform. I am not a prophet of doom, but the understanding of the people, as to whether they will be prepared to pay 2 cedis or 3 cedis per transaction that are being made, will be difficult for them to understand because the value of that 2 cedis might be different at that echelon of transactions.

“So effectively, we are going to get that sensitivity of patronage going down as a result of the price that is being charged. But for me, I think we have gone beyond that kind of back and forth, where we will be thinking about the bill being passed or not.

“We have to look at it as a bill that has come to stay.”

The National Democratic Congress (NDC) lawmakers have sued the Attorney General following the approval of the e-levy by Parliament on Tuesday, March 29.

The Minority Leader Haruna Iddrisu described the approval as illegal and unconstitutional because, in their view, the Majority did not have the right numbers to pass it.

“This is a charade,” he said at a press conference in Parliament, adding that “there is no E-levy.”

“The majority of less than 137 conducting businesses only proceeded on illegal and unconstitutional business. Parliament did not have the numbers to take any decision that should binding Parliament and Ghanaians,” he added.

But Prof Mensah said nothing will come out of the suit.

“I have heard Minority going to court, I don’t think anything will come out of it because the budget in itself was rejected but then when it went to the Supreme Court, it was a unanimous decision, 7:0 [against the plaintiff]. So I don’t think anything new will come out of it,” he said.