Introduce Agricultural and Industrial Development Levy” (AID Levy) in place of E-Levy- CESPAG to government

The Centre for Socio-Economic Policy and Anti-Corruption Governance (CESPAG), in a press statement in Tamale has communicated its profound commendations to the President H.E John Dramani Mahama and the organizing committee of the recent National Economic Dialogue, 2025.

CESPAG believes the dialogue had brought forth collection of strategic and pragmatic economic policies and implementation road maps, to enable the President resets Ghana on the path of sustainable growth and prosperity for Ghanaians.

CESPAG think that several policies and recommendations were proffered to the President of the Republic of Ghana to push the theme, “Resetting Ghana – building the Economy we want together”

However, CESPAG indicated that from the communique of the National Economic Dialogue document, the participants outlined their recommendations based on six (6) thematic areas which formed the terms of reference of the National Economic Dialogue.

Although those recommendations are of equal importance in building the desired Economy, CESPAG narrowed its statements on points (i) c. and (ii) of the said communique.

The Executive Director of CESPAG Ali Darabo Suleimana in his presentation believes that the key agenda for this year’s resetting strategy is Agriculture and Industry.

“We share in those enthusiasm to boost Agric and Industry but wants to advise the government to strengthen the sources of financing Agricultural and Industrial activities to ensure growth and sustainability”.

Below is the full statement:

PRESS CONFERENCE

THEME: The 2025 National Economic Dialogue: The Key Agenda

The Centre for Socio-Economic Policy and Anti-Corruption Governance (CESPAG), wishes to communicate its profound commendation to the President and the organizing committee of the just ended National Economic Dialogue, 2025. Indeed, the dialogue had brought forth collection of strategic and pragmatic economic policies and implementation road maps, to enable the President resets Ghana on the path of sustainable growth and prosperity for all. In effect, several policies and recommendations were proffered to the President of the Republic of Ghana to push the theme, “Resetting Ghana – building the Economy we want together”

From the communique of the National Economic Dialoguedocument, the participants outlined their recommendations based on the six (6) thematic areas which formed the terms of reference of the NED. Although those recommendations are of equal importance in building the desired Economy, CESPAGwishes to narrow its statements on points (i) c. and (ii) of the said communique.

I) c. “Implementing major tax reforms that expand the tax net, including property taxes, revise VAT rate and address revenue leakages”

II) a. “Establish new agricultural institutes and enhance existing ones to foster expertise, drive innovation, and stimulate interest in industrialized agricultural production”

In other statements or presentations specifically, the state of the nation of the 9^th Parliament and the 68^th independence celebration all delivered by H.E. the President, Agriculture was one of top priorities. The President desires to see a great transformation in the Agric and industry sectors as the panacea for the agenda ahead.

By inference, CESPAG believes that the key agenda for this year’s resetting strategy is Agriculture and Industry. These sectors are believed to be the focus and direction of the resetting agenda. The president has outlined numerous policies and programs in these areas.

Indeed, CESPAG share in those enthusiasm to boost Agric and Industry but wants to advise the government to strengthen the sources of financing Agricultural and Industrial activities to ensure growth and sustainability. As a result, and in reference to the recommendation made by the National Economic Dialogue revision of taxes as in i) (c) above, CESPAG makes the following statement:

Policy Statement 1: Introduce Agricultural and Industrial Development Levy” (AID Levy)

The proposed removal of the Electronic and COVID-19 levies should lead to the introduction of “Agricultural and Industrial Development Levy” (AID Levy). This levy should be at least 2.5% on all goods and services being consumed in the country.

Indeed, it is surprising to note that Agric and Industry, which are the major sources of producing goods and services, are not supported by any form of direct levies. Funding to these sectors is largely by Government of Ghana, IGF, Donor supports etc. which may not be adequate to boost agricultural and industrial activities that propels Ghana to achieve Goal 2 of the Sustainable Development Goals of the United Nations.

The NHIL and GETFund support Health and Education respectively. The 2023 Ghana Revenue Authority Report showed that over Ghc5.26 billion was generated each for the NHIL and GETFund from domestic and import levies of 2.5%whereas Ghc24.98 billion was also received as VAT from domestic and import levies. (Source – GRA Tax Revenue Report 2023)

This means that if the country accepts the introduction of the Agricultural and Industrial Development Levy” (AID Levy), over Ghc5 billion cedis may be realized to embark on the many policies and programs earmarked for the Agricultural and Industrialization agenda.

The revenue from this levy may be used as follows:

1. Provide input subsidies to farmers

2. Promote organic farming to preserve our soils and seeds

3. Boost irrigation farming

4. Agro-Processing

5. Ensure farmer income security through climate insurance etc.

The introduction of the AID Levy may serve better purpose than the COVID-19 Levy and E-Transaction Levy whose revenue for 2023 was Ghc3.37 billion put together (GRA Tax Revenue Report, 2023). These levies are already considered as nuisance by many Ghanaians, and their replacement with the AID Levy may be embraced by Ghanaians.

Policy Statement 2: Limit GETFund support to Only Basic Education to First (1^st) Degree

Programs, Academic Research and Infrastructure Development.

With the increasing cost of government expenditure on education due to the free SHS, free first year tertiary education, infrastructure demand, academic research etc., the Centre recommends that Scholarships from the Fund to read second degree or PhD should be suspended for applicants working outside academic institutions for five (5) years or more.

Additionally, scholarships for 1^st degree programs should be granted for students pursuing their studies in Ghanaian universities only. This is a condition captured in the GETFund Act, 2000 (Act 581), section 2.

The 2019 Auditor General’s report indicated serious abuse of the GETFund Scholarship disbursements. As mentioned in the saidreport, scholarships were given to applicants who did not qualify, and others were also given to study abroad against the provisions of the Act. Thus, a temporary suspension of this aspect of GETFund is a step in the right direction.

This proposal is to enable the country to channel the scholarshipfunds to improve basic education, especially in the rural areas where education is still being provided under trees. It will also help improve roads to schools in those deprived areas.

In effect, suspension of scholarships to individuals to study postgraduate programs may save some funds to be used for the following:

1. Achieve Goal 4 .1 of the SDGs, which says, “ensure that all girls and boys complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes”.

2. Increase access for brilliant but needy students to study undergraduate (1^st Degree) programs to make them employable.

3. Streamline the scholarship administration to be in line with section 2 (2b) of the Ghana Education Trust Fund Act 2000 (Act 581) to minimize abuse of the scheme.

The Centre, however, supports the provision of grants to tertiary institutions to train brilliant students as members of faculties as provided in section 2 (d)(i) of the GETFund Act, 581. Indeed, the Minister of Education has hinted that five (5) deserving students in all the public Universities would be given scholarships to study for a PhD to improve their teaching skills in their various institutions. This is laudable than given scholarships to people who wish to increase their grade at work for better salaries but with same previous responsibilities.

Any Ghanaian desirous of pursuing a postgraduate or a PhDprogram of study may do so through other means such as the student loan etc. but not a GETFund scholarship. We should do this for at least five (5) years and direct those resources to build a strong basic education that guarantees sustainable outcomes in achieving Goal 4.1 of the SDGs of the United Nations.

Policy Statement 3: Renamed the Free SHS as “Government-Parent Sponsored Education”

This is to ensure ownership and shared responsibility as well as retaining the parent-child bond.