A lecturer in Finance at the University of Ghana (UG), Legon, Prof Lord Mensah, says the government's decision to launch an Electronic Transaction Levy (E-Levy) was a step in the right direction.
Sharing his thoughts on the U-turn of the International Monetary Fund (IMF) following E-Levy's failure to meet expectations, financial experts added that this was an indication of policy uncertainty by E-Levy executives. economy.
“I was well aware that the E-levy was a new feature introduced on mobile phones and would address the reaction of users of the platform. But the government continues to change the post office. The government has given us two options and in economic management it always has options.
“In order to get smart and high quality management, all you have to do is manage the economy. You choose the best option to maximize the use of that option. We successfully had the option to go to the IMF. They are talking about the E-levy, because they are the people in charge, they are talking about numbers and measures that will benefit the economy.
“I believe that when they chose the E-levy in the end that should be able to help us but then we will turn around and tell us that you are going to the IMF within a month of launching and implementing E. "Taxes create what we call policy uncertainties," he said. Lord Mensah told Starr News in an interview.
According to him, the attempts and shortcomings associated with policy uncertainty would not be able to address the economic challenges facing the country.
Emphasizing that it is not surprising that the government is negotiating with the IMF for funding, Prof Lord Mensah says he expects the IMF to step in to reduce economic mismanagement.
However he laments that there will be consequences.
“This economic growth does not produce anything to be expected from the economy. So the IMF will come and put it down and in the process of overthrowing it will have an impact on the economy, ”added Prof Lord Mensah.
With the information gathered today, IMF officials will arrive in Ghana on Wednesday, July 6, 2020, to begin negotiations with the government.
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