Using E-Levy as collateral for loans unacceptable – Ato Forson

Former Deputy Finance Minister, Cassiel Ato Forson, has bemoaned the government’s decision to use the E-Levy as collateral for loans.

In a post on his Twitter handle, Ato Forson said that the move will worsen the country’s debt challenge which is the main cause of the current economic hardship being faced by Ghanaians.

“Absolutely unacceptable! This will only worsen Ghana’s Public Debt!” a tweet by the ex-deputy finance minister, who is also the Member of Parliament for Ajumako-Enyan-Esiam, read.

Some economists, including MP for Bolgatanga Central, Isaac Adongo, earlier claimed that the government was going to collateralise the E-Levy.

However, some members of the government including Deputy Finance Minister, John Kumah denied the claims, saying that the E-Levy will be used for the construction of roads and the government’s job creation initiatives.

Roads Minister Kwasi Amoako-Attah, on the floor of parliament, indicated that the government is seeking to use E-Levy as collateral after its passage in Parliament.

According to him, the government in its wisdom will use the E-Levy to bring in greater revenue that would be securitized and used to raise a bond for road infrastructure.

The minister made this known in parliament while responding to a question from Adaklu MP, Kwame Governs Agbodza on whether road tolls will be reintroduced.

“Government is fully determined to use all forms of revenue into the road fund to build road infrastructure in the country including the revenue from tolls. Mr. Speaker, there are four main sources, one is what we get from the fuel levy, the other three sources are from the toll booths, from the DVLA sources and the vehicles that transcend on the corridors of our country.

“The three together constitute nearly 6 percent. The Government in its wisdom has called for the passage of E-Levy to bring in more revenue to build the road infrastructure of our country. So, government is looking forward to the passage of E-Levy that will bring in greater revenue that would be securitized and then used to raise a bond if possible, to build the road sector infrastructure. Government direction and policy is to bring in better form of collection because the toll revenue is built in the proposed E-Levy,” he said

He added that the government has not made any loss since the cessation of road tolls as the budget was approved.

Read the tweet by Ato Forson below