2022 BUDGET: NUGS STANDS NOT DATA INFORMED, GOV’T LOSES MORE FROM REVENUE LEAKAGE THAN TO GAIN FROM 1.75% E- LEVY.
The National Union of Ghana Students (NUGS) in a Press conference organized on 25th November, 2021, at the University of Ghana Accra City Campus, to call on the Parliament of the Republic of Ghana to approve the 2022 Budget because the 1.75% E- levy will help government to increase revenue to make initiatives like the YOUSTART a reality.
It is never enough for NUGS to jump in praise to such political initiatives. The Youstart concept, indeed is not new in Ghana, perhaps its name may just be different.
As University student leaders, we must equally encourage government to address lapses in the national expenditure as well as revenue leakages till then long -term fiscal and debt sustainability will remain vague.
Ghana loses a substantial amount of revenue annually through these revenue leakage avenues such as transfer pricing, various forms of money laundering, embezzlement of state funds by some government officials as well as tax exemptions.
Studies by major financial international agencies like the IMF and some development partners estimate the annual revenue loss from illicit financial flow at USD $ 3 to USD $ 4 BILLION annually through tax exemptions alone.
The Nana Addo Dankwa Akufo Addo government in its 2021 budget projected tax revenue and total revenue at GHC 56 BILLION (USD $ 9.7 BILLION) and GHC 72 BILLION (USD $ 12.4 BILLION) respectively. Sincerely, these figures were too small when juxtaposed with the country’s huge economic and social needs.
The Youth and students of Ghana, will be the most affected persons if this 1.75% electronic transaction levy in the 2022 budget is approved when already, most of these Ghanaian students are suffering from the consequences of our state revenue leakage. Some students pay academic and hall fees using these electronic financial platforms.
The proposed tax measures by government are projected to make a significant impact in 2022 as total revenue is expected to go up by 43% to GHC 100.5 BILLION but these figures of revenue increase are as important as revenue leakage being stopped.