Adnan Adams Mohammed
The Electronic Transactions levy (E-levy) collections for the year 2023 stood at GH¢1.19 billion.
This reflects remarkable increase in the collections compared to the previous year’s collection of GH¢106.79million, although, the 2022 collections was affected by other factors.
However, the revenue line witnessed a decline at the beginning of 2023 due to a reduction in its rate from 1.5 percent to 1 percent. During the first quarter of 2023, the E-levy generated GH¢246.9million. Implementation of E-levy took effect on 1 May 2022. The E-levy charge covers mobile money payments, bank transfers, merchant payments, and inward remittances (Ghana Revenue Authority, 2022).
“Last year, E-levy generated GH¢1.19 billion and as part of dealing with the job situation… unemployment situation, the government has committed funds through YouStart from this E-levy sources…to GEA and NEIP to address the unemployment situation in the country”, Dr. John Kumah, Deputy Minister of Finance, revealed last week.
“I am happy to announce that institutions like Wealth and Jobs Expo and all private groups that are willing to help create jobs in the private sector will also be supported to help create jobs and businesses in the private sector.”
The Ghana Statistical Service last week announced that about 1.5 million Ghanaian youth are unemployed.
Dr. John Kumah in response to the latest figures from the Ghana Statistical Service on the unemployment indicated that, to help ameliorate the situation, government allocated funds from the E-levy collection to the YouStart Programme, the Ghana Enterprise Agency, and the National Entrepreneurship and Innovation Programme to combat unemployment in the country.
He further highlighted the government’s efforts in attracting investments into the country while spurring job creation, emphasizing the need for belief in entrepreneurship to address the unemployment rate.
“In the medium term, the government aims to intensify efforts to attract domestic investments and FDIs [Foreign Direct Investments] in strategic centres with emphasis on creating jobs anchored on the government’s growth strategy. The strategy is projected to contribute to the creation of approximately 500,000 jobs.
“We are not saying 1.5 million [unemployed youth], every one of them should create jobs. No. Even if we get it, we get 10% of them, it’s 150,000 who will become entrepreneurs. If they do an average of let’s say 100 jobs….150,000 x 100, you have almost solved the unemployment problem,” the Deputy Minister of Finance added.
