E-levy: Structural weaknesses cause of economic crises not covid - Pratt

The Managing Editor of the Insight newspaper, Kwesi Pratt Jnr., has asked the NPP government to desist from attributing the country’s economic crises to the emergence of the COVID-19 pandemic.

According to Kwesi Pratt, the country’s economic status was in tatters before the emergence of the global covid-19 pandemic.

Speaking at the maiden edition of the Presidential Business Support in September 2021, at the Kempinski Hotel, President Akufo-Addo noted the support offered by the private sector, coupled with effective management of the COVID-19 crisis by the government, have seen the Ghanaian economy outperforming its peers and rebounding faster than envisioned.

“After recording negative growth in the second and third quarters of 2020, the economy recovered strongly in the fourth quarter of the year, and well into the first and second quarters of 2021, registering an impressive growth rate of 3.1% in the first quarter of this year, and 8.9% in the second quarter,” he said.

As part of ways to revive the economy government introduced the Electronic-levy to undertake developmental projects.

Speaking on the floor of Parliament on Wednesday 17th November 2021, Finance Minister Ken Ofori-Atta stated the tax would widen the tax net and rope in the informal sector.

He added that electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances would be charged at an applicable rate of 1.75%, which the sender shall bear except for inward remittances, which the recipient will bear.

In an interview with Atinka FM’s AM Drive host, Kaakyire Ofori Ayim, Managing Editor of the Insight newspaper, Kwasi Pratt Jnr., says the country’s economic crisis is suffering from structural weaknesses.

According to Kwesi Pratt, covid-19 is a lame, useless excuse by the government that does not address the fundamental problem.

“It is sad that when we talk about the state of the national economy, government tries to blame covid-19. But the reality of a bad economy was evident before the outbreak of Covid-19. It is never true that Covid-19 is the cause of our problems. Ghana’s economy was in tatters before we were hit by the deadly covid-19. Structural weaknesses cause of economic crises not covid,” Kwesi Pratt Jnr told Kaakyire Ofori Ayim.