Ghana’s recent passage of the controversial e-levy tax appears to be having a bullish effect on its investment outlook as bonds have experienced a bounce following parliament’s approval this week. The country’s bonds sold off sold-off from 85-90 cents on the dollar to around 60 cents.
Previously the yield on the country’s $1 billion bond maturing in 2026 fell for the sixth straight day. However, as Finance Minister Ken Ofori-Atta announced austerity measures meant to stabilize Ghana’s faltering economy, investors have been reassured that the country is on the right track to economic recovery.
While the e-levy which will collect 1.5% of every digital transaction in Ghana has not been widely popular among Ghanaians, the government believes it places the country in a position where every citizen pays a fair share to contribute to the economy and expects it to boost revenue to about 15.4% of GDP by the end of 2022. Earlier this week, legislators passed the bill as members of the opposition party who are against it, staged a walkout. This was months after a fight broke out on the floor of parliament between proponents and critics of the e-levy tax.
In his address earlier this week, Ofori-Atta announced that the government has also decided to reduce the rate of the levy from 1.75% of the transfer to 1.5% of the transfer, insisting that the objective of the bill was to broaden the tax of the country and impose a levy on electronic transfers to enhance the government’s drive for revenue mobilisation.
Copyright: News Central TV
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from News Central TV.
