Using E-Levy as collateral for unacceptable loans – Ato Forson

Former Deputy Minister of Finance, Cassiel Ato Forson

Cassiel Ato Forson says move will worsen Ghana’s debt situation

Government to use E-Levy as collateral for loans – Roads Minister

Government will not use E-Levy for loans – Deputy Finance Minister

Former Deputy Finance Minister Cassiel Ato Forson lamented the government’s decision to use E-Levy as collateral for loans.

In a post on his Twitter account, Ato Forson said the move would aggravate the country’s debt problem, which is the main cause of the current economic hardships faced by Ghanaians.

“Absolutely unacceptable! This will only worsen Ghana’s public debt! a tweet from the former deputy finance minister, who is also an MP for Ajumako-Enyan-Esiam, reads.

Some economists, including Bolgatanga Central MP Isaac Adongo, have previously claimed that the government will guarantee the E-Levy.

However, some in government, including Deputy Finance Minister John Kumah, have denied the claims, saying the E-Levy would be used for road construction and government job creation initiatives.

Roads Minister Kwasi Amoako-Attah on the floor of parliament said the government was looking to use E-Levy as collateral after it passed parliament.

According to him, the government, in its wisdom, will use the E-Levy to generate larger revenues which would be securitized and used to raise a road infrastructure bond.

The minister made this known to parliament when answering a question from Adaklu MP Kwame Governs Agbodza on whether road tolls will be reintroduced.

“The government is fully committed to using all forms of revenue in the road fund to build road infrastructure in the country, including revenue from tolls. Mr President, there are four main sources, one is what we get from the fuel levy, the other three sources are from toll booths, DVLA sources and vehicles passing through the corridors of our country.

“The three together constitute almost 6%. The government in its wisdom has called for the adoption of the E-Levy to generate more revenue to build our country’s road infrastructure. Thus, the government expects looking forward to the adoption of the E-Levy.this will bring in greater revenue which would be securitized and then used to raise a bond if possible, to build the road sector infrastructure.Government direction and policy is to bring a better form of collection because toll revenue is built into the E-Lévy,” he said.

He added that the government has not made any losses since stopping road tolls when the budget was approved.

Read Ato Forson’s tweet below

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