Home Business Ghana’s E-Levy and Covid Recovery Levies Fall Short of Revenue Targets in...

Ghana’s E-Levy and Covid Recovery Levies Fall Short of Revenue Targets in 2024

0
E Levy
E Levy

Data from the Ghana Revenue Authority (GRA) reveals that both the controversial Electronic Transfer Levy (e-levy) and Covid Recovery Levy fell short of their respective revenue targets for the year 2024.

The e-levy, which has been at the center of public debate since its introduction in 2022, was expected to generate GH₵2.1 billion, but it ended up collecting GH₵2 billion—a shortfall of GH₵100 million. Since its launch, the e-levy has consistently missed its ambitious targets, including an initial target of GH₵1.46 billion for the first two months of 2022, of which only GH₵93 million was realized.

Despite steady growth, the e-levy still remains far from reaching its annual target of GH₵6 billion. Similarly, the Covid Recovery Levy (Flat Rate) was expected to generate GH₵128 million but only raised GH₵86 million, falling short by over 30%. The Standard Rate of the Covid Recovery Levy performed even worse, with the GRA collecting GH₵2.7 billion against a target of GH₵4.2 billion, resulting in a significant drop of GH₵1.5 billion.

In the run-up to the 2024 elections, both President John Mahama of the National Democratic Congress (NDC) and then Vice President Dr. Mahamudu Bawumia of the New Patriotic Party (NPP) promised to abolish the e-levy. With Mahama now in office, many Ghanaians are awaiting him to fulfill this campaign promise.

Despite these shortfalls, the GRA exceeded its overall revenue target for 2024, collecting GH₵153.5 billion, surpassing the GH₵145.9 billion target by GH₵7.5 billion. This represents a 5.3% increase and a notable growth of 35.3% compared to 2023. The GRA’s success was attributed to a strong performance in various tax sectors, including corporate taxes, which raised GH₵38 billion against a target of GH₵30 billion, and mineral royalties, which brought in GH₵5.2 billion—well above the GH₵3 billion target.

The GRA’s total revenue for 2024, including additional levies such as the Sanitation Debt Recovery Levy and the Energy Sector Debt Levy, amounted to GH₵157.9 billion. Domestic revenues saw a 31.6% growth, while customs revenues increased by 47%, highlighting the broader success of the GRA in meeting and exceeding expectations in key areas of tax collection.

Send your news stories to newsghana101@gmail.com Follow News Ghana on Google News

NO COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

error: Content is protected !!
WP Radio
WP Radio
OFFLINE LIVE
Exit mobile version