In an interview with colleagues of the blogging space ,The deputy Honourable minister, John Kumah, gave a vivid detail of why the government is scraping the road tolls ,the introduction of E-Levy And what will be the benefit of every Ghanaian Youth who wants to start His or Her own business under the YouStart Program in the 2022 budget from next year.
He said ,the government had to abolish the collection of road tolls due certain factors after some thorough research.
In his statement, he said the road toll collection across the country generates less revenue for the government hence doesnot contribute much to the development of road across the country. He also stated that ,queuing in long traffic just to pay 1ghc at toll booths ,is affecting productivity and also time wasting.
He further explain that, Government also realized that most of toll booths are found of areas where a lot of Ghanaians who are trying to reach out of poverty resides, places like Ashaiman and Kasoa while the rich and poverty in society who live in East Legon etc are not paying taxes. This in Government’s mind is not equitable and fair.
To address these challenges, Government has abolished all tolls on public roads and bridges.
The toll collection personnel will be 30 reassigned. The expected impact on productivity and reduced environmental pollution will more than off-set the revenue forgone by removing the tolls.
He further went ahead to address the concerns of street hawkers whose business have been affected by this decision of the government, saying “there a lot of market in Ghana they can sell their goods ,hence this decision by the government is protect them from frequent accidents at various toll boots” He stated.
Hon. John Kumah used the opportunity to explain the introduction of the E-Levies and Transaction Tax. He went further to explain that ; After considerable deliberations, Government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Transaction Levy or E-Levy.”
Further more, Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient.
He reiterated that, government’s safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day (which is approximately GH¢3000 per month) will be exempt from this levy. A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others. 3y3 Baako, Ye nyinaa bey tua.
He was further asked what does the budget have for the Youth and the young entrepreneurs in Ghana ?
The Honourable minister made mention of the YouStartInitiative by the government to support the entrepreneurs and the private sector.
Furthermore , Through YouStart initiative Government proposes to use GH¢1 billion each year to catalyze an ecosystem to create 1 million jobs and in partnership with the Finance Institutions and Development Partners, raise another 2 Billion Cedes . In addition, local Banks have agreed to a package that will result in increasing their SME portfolio up to GHC 5 billion over the next 3 years. This will result in an unprecedented historic 10 Billion Cedes commitment to the private sector and YouStart over the next 3 years.
He sated that , Government has also acquired the license to set up the Development Bank Ghana. Through the Bank Government will provide a powerful response to a long-standing desire of our businesses to easier access to medium and long-term loans at affordable interest rates.