Foreign investors concerned about govt ability to increase revenue
Parliament is set to resume sitting on January, 25 2022
The Ministry of Finance has said it was confident that the E-Levy Bill would be passed when Ghana’s parliament resume sitting on January 25, 2022.
A statement issued by the ministry said parliament needed to pass the e-levy through a healthy debate without the impasse witnessed previously to show Ghana's democratic credentials.
According to the ministry, the impasse on the e-levy has created a bad impression of Ghana on the international market which was affecting the government’s ability to raise funds.
“The Ministry would like to state that a healthy debate in a vibrant Parliament is a critical part of Ghana’s growing democratic credentials and by no means should it be deemed to be a fiscal risk. Government is confident that when Parliament resumes sitting this month, the E-Levy Bill, which has already been discussed and approved by the Finance Committee of Parliament, will be passed,” the Ministry said in a statement reacting to an article on Ghana’s debt situation by Bloomberg.
According to the ministry, the impasse in parliament had put foreign investors on edge and was discouraging them to invest in Ghana, affecting the government ability to raise revenue to implement its programmes.
He said the impasse in the house had also made potential investment ensure of the government ability to implement some of its revenue policies.
“It is most unfortunate to note that foreign investors and market participants are on edge following the impasse in Parliament, in relation to the passage of the E-levy Bill. The market seems to now be pricing into our bonds the perceived risks of having a slim majority in Parliament and the consequences thereof."
“The markets also seem to be concerned that this might impact Government’s ability to successfully pass and implement some of its major revenue policy measures as presented in the 2022 Budget,” the statement added.
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