Former Deputy Information Minister under the Mahama administration, Felix Kwakye Ofosu, has urged the government to rescind its decision to raise revenue for the country through the proposed e-levy.
Instead, he has advised government to cut down on its expenditure and invest the savings thereof into developing the country.
“The e-levy, which this government touts as the panacea to all our problems is completely irrelevant as far as resolving the crisis we are in at the moment, is concerned,” he said.
He made the assertions on Joy News’ Newsfile, on Saturday, February 5, 2022, where he accused the government of mismanaging the economy.
“It is important to stress that the Ghanaian Economy currently is hanging by a thread and it’s no exaggeration to say that it has already collapsed.
“The office of government machinery is receiving about GHC3.2 billion – over 500 million cedis more than they received last year. As I speak to you, our President likes to sit in a $14,000 an hour rented jet at a time when we have a Presidential jet that is fit for purpose. How can you live like an Arabian King, you will not listen to cries and pleas to cut down on this cost and you expect them to pay e-levy which will be taxing people’s savings and their capital?” he asked.
He stated that two things have undermined Ghana’s economy – unsustained debt overhang and a large budget deficit – of which both result from the decisions of the government.
He added that investors are no longer interested in lending money to the government due to a lack of faith that the country will be able to comply with the terms of payment.
“Government creates the impression that once the e-levy is passed, they’ll need something little in order to finance our development, but the crisis we are in is that this government does not have policy credibility, so investors no longer want to lend us anything in terms of financing or lending,” he said.
The comment comes in the wake of town hall meetings by the government aimed at sensitising the government on the need to accept the e-levy. It also comes at a time when Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) has been downgraded by international rating agencies such as Fitch and Moody.
Fitch downgraded Ghana’s IDR to ‘B-‘ from ‘B’ with a negative outlook.
The downgrade of Ghana’s IDRs and Negative Outlook reflect the sovereign’s loss of access to international capital markets in the second half of 2021, following a pandemic-related [COVID-19] surge in government debt.
Moody’s Investors Service (“Moody’s”) also on Saturday, February 5, 2022, downgraded Ghana’s long-term issuer and senior unsecured debt ratings to Caa1 from B3 and changed the outlook to stable from negative.
Moody’s has also downgraded the senior unsecured MTN programme ratings to (P)Caa1 from (P)B3 and the backed senior unsecured debt rating to B3 from B1.
The downgrade to Caa1 reflects the increasingly difficult task the government faces in addressing its intertwined liquidity and debt challenges. Weak revenue generation constrains government’s budget flexibility and tight funding conditions on international markets have forced the government to rely on costly debt with shorter maturity.
Moody’s estimates that interest payments will absorb more than half the government’s revenue over the foreseeable future, which is exceptionally high compared to peers at all rating levels. As a remedy, the government has proposed sharp fiscal consolidation and a switch to borrowings from external partners on more favourable terms.
Source: myjoyonline.com
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Ghanaians should not pay tax whenever the NDC comes to power because they are against the payment of tax.
One of the babies with sharp teeth who are destroying the NDC.
For five years in government,if the official plane is faulty and the Air force hires a private plane for the president can this be news to waste your time on, baby with sharp razor blades. When you were a deputy minister, I once met you at a business first class of BA flight to London.Where you continue to that I do not know . Be real and speak like a proper politician with a kind heart on issues.
The NDC does not get it and it will never get it. They just can't do away with the malacious propagation tactic, based on the assumption that the more you stress and repeat the lies, the more the electorate buys into them as being credible. Despite the fact that this assumption can only apply to uninformed voters, the Ghanaian electorate has grown out of the period of military rule and the democratic constitution administrations of the Fourth Republic. As a result, they can determine their preferred competent government. Because they see the physical and infrastructural development going on in Ghana, they do not need a third party to tell them. But what does the third party have in store for them? This, unfortunately, is not forthcoming from the NDC. It is always false and exegerated propaganda against the ruling party. They invent their own myths and ask their campus politicians, the so-called babies with sharp teeth, to bark from the roof top, insulting their opponents. This will not wash.
Prior to politics, what work did you do? You came to milk the poor man’s taxes to the extent that you used some of these monies to “to pull ladies” panties”. You think we have forgotten? Sit there and tickle yourself.
NDC wants to come to power at all costs but Ghanaians know the type of governance you portray during your time corruption here and there double salary
Look at him too. Tell is what the future is for NDC after JDM losses the 2024 general elections.
Double salary men like propaganda. It is depressing to listen to these NDC people. Look at the ambulances they bought, yet Ofosu- Kwakye was defend NDC. Desperate guys who will not come back to power any time soon.
Hahahaaaa , NDC imposed taxes on condoms and cutlasses because John Mahama was living like an Arabian King. So Akuffo Addo is only practicing what John Mahama preached, that simple.
What about you? can you tell us where you got the money to buy 2 mansions 1 for yourself and the other for your wife or girlfriend.