A Professor at the University of Ghana Business School, Lord Mensah has said that he was not surprised the 1 percent Covid levy was not removed during the presentation of the mid-year budget statement presented by Finance Minister Ken Ofori-Atta.
He stated that this is a government that is emphasizing on revenue generation instead of expenditure cuts therefore any opportunity available including the Cvid levy to generate revenue will be maintained.
The special levy known as the COVID-19 Health Recovery Levy on the supply of goods and services and imports was meant to raise revenue to support the fight against Covid.
Asked whether he was surprised that the levy was not removed in the mid-year budget while speaking on News 360 on TV3 Monday, July 31, Prof Lord Mensah said “I am not surprised because this is a government that has been emphasizing revenue generation instead of expenditure cut.
“So any opportunity that will avail itself as far as making money available to the public purse will be difficult to take it off. I wasn’t expecting that to change. In the worst case, I was expecting it to be recalibrated by looking at how Covid has outlived its purpose. Even the WHO has said the world is without Covid now, whatever levy we are collecting relative to Covid must go.”
Presenting the mid-year budget, Mr Ofori-Atta said that with a lot of effort, the government managed to avoid empty shop shelves for medicines and other essentials the country has seen no shortages of food;
“We have been spared the frustrating spectre of long queues for fuel at our filling stations; and, we have managed, in spite of all the challenges, to keep the lights on,” he said.
“Indeed, as the Psalmist said (in Psalm 118:23) this is the LORD’s doing; and it is marvellous in our eyes.
“This ‘turning the corner’ is underpinned by the investments and sacrifices we have
collectively made during this difficult period since March 2020,” he added.
Mr Ofori-Atta further said that it is important that we acknowledge some of the major milestones that this country has experienced in the last 3 years.
“We should be still and appreciate that despite our challenges as a country, we have been saved from many extreme conditions that others have suffered, including peace, health, security, continuous supply of power, and life itself, amongst others.
“Over that period, the country has gone through extremely difficult situations, and
the gratitude of His Excellency the President and his government goes to the good
people of Ghana for their patience, understanding and positive contributions to
Government’s efforts to weather the storm.”