FULL TEXT: Finance Ministry answers 38 frequently asked questions on IMF bailout

The Electronic Transfer Levy will not be discontinued despite an application to the International Monetary for a financial bailout, the Finance Ministry has said.

The Ministry said the IMF bailout is a means to help the country shore up its foreign reserves thus tax measures including the electronic transfer levy will not be cancelled.

The Finance Ministry in a 15-paged document addressed some frequently asked questions on Ghana’s move to seek support from the IMF.

Answering the question, “Will government terminate the E-Levy because IMF will give Ghana money?”

The Finance Ministry said, “NO. The IMF lending to Ghana will be for the balance of payments support (i.e., to shore up the international reserves). The government is committed to ensuring the smooth operationalization of all taxes including the e-levy to ensure that in addition to the IMF’s resources, the government can continue to support its developmental goals on its own while ensuring that the tax-to-GPD ratio increases to the peer range of 16%-18%.”

It added: “An IMF-supported programme is likely to encourage the government to investigate the factors hindering the success of the e-levy (including by providing technical assistance if needed) and come out with strategies to improve it. Additionally, other tax measures could be considered for the medium-term.”

Read the full statement below: