Despite IMF moves, the government is unable to abolish the E-levy - ISSER.
Prof. Peter Quartey, Director of the Institute of Statistical, Social, and Economic Research (ISSER) at the University of Ghana, says the government must continue collecting the Electronic Transfer Levy (E-levy) despite the move to the International Monetary Fund (IMF) for a bailout.
Prof. Quartey, on the other hand, added that the government should also take steps to reduce the levy's charges.
"The IMF collaborates with governments." Initially, Washington simply handed over policies and everything to the respective countries; however, this has changed. You must develop your own policies and engage with the IMF, who will tell you which ones to remove and which ones to add, and then you must reach a consensus, after which they will say, "We will fund your program."
"This is accomplished through balance of payment support." It may take time, as in the case of Sri Lanka, which announced its intention to approach the IMF but has yet to complete the process," he told TV3.
The ISSER Director also cautioned Ghanaians against expecting immediate results from the bailout, stating that the process and engagements with the Fund would take time.
Meanwhile, in a Facebook post on July 2, 2022, former President John Mahama urged President Akufo-Addo to remove Vice President Mahamudu Bawumia from the Economic Management Team as Ghana seeks a bailout program from the IMF.
Mr. Mahama also claims that Finance Minister Ken Ofori-Atta has lost credibility and should be removed from the team negotiating with the IMF on Ghana's behalf.
Mr. Mahama said in a statement following the government's decision to seek an IMF bailout that Ghana should present the IMF with a home-grown solution.
"I applaud President Akufo-decision Addo's to formally engage the IMF in order to enter into a program with the Fund."
"Though late, it should be regarded as an important step toward addressing the dire economic situation that has left Ghanaians wallowing in intense suffering and hardship."
"In addition to the announcement of engagement with the IMF, a comprehensive domestic program should be developed and presented to the Fund for support." "It is critical that a team of skilled and competent negotiators be assembled in order to obtain the best set of measures from the Fund," Mr Mahama stated.
"The Finance Minister, who oversaw the disastrous collapse of the economy, cannot and should not be part of the team of negotiators," he added. He has lost credibility, as well as the trust and confidence of our economy's stakeholders.
"President Akufo-Addo must make the audacious decision to replace his finance minister immediately with a more assured and competent individual who is willing and able to work tirelessly to turn around our nearly hopeless situation."
"Additionally, given his obvious failures, the Vice President must be relieved of his responsibilities as Chair of the Economic Management Team, allowing the President to reconstitute the team."
"We must learn from this episode and avoid cheap politicking with the economy, which will only result in the disastrous outcomes that have brought us here."
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