Part of GH¢1.19 billion generated from E-Levy channelled to job creation - Deputy Finance Minister

Deputy Minister of Finance, Dr. John Kumah, has said that as part of efforts to reduce the high unemployment rate in the country, the government pumped parts of the revenue from the Electronic Transfer Levy (E-Levy) into job creation.

He noted that the government allocated funds to its YouStart, National Entrepreneurship and Innovation Programme (NEIP) and Ghana Enterprise Agency to create more jobs for the teeming unemployed youth in the country.

Reacting to the latest report on unemployment from the Ghana Statistical Service, Dr. John Kumah while speaking at the launch of the Wealth and Jobs Expo Ghana, said, "The Ghana Statistical Service on Wednesday announced that about 1.5 million Ghanaian youth are unemployed.

"Last year, E-Levy generated GH¢1.19 billion, and as part of dealing with the job situation… unemployment situation, government has committed funds through YouStart from this E-Levy sources…to GEA and NEIP to address the unemployment situation in the country."

The deputy finance minister added, "I am happy to announce that institutions like Wealth and Jobs Expo and all private groups that are willing to help create jobs in the private sector will also be supported to help create jobs and businesses in the private sector."

Dr Kumah noted that the government, in the medium term, aims to intensify efforts to attract domestic investments and Foreign Direct Investments with an emphasis on creating jobs anchored on the government's growth strategy.

He indicated that the strategy is projected to contribute approximately 500,000 jobs.

"Even if we get it, we get 10% of them, it's 150,000 who will become entrepreneurs. If they do an average of, let's say, 100 jobs….150,000 x 100, you have almost solved the unemployment problem," Dr John Kumah stated.

The introduction of E-Levy, according to the government, forms part of measures to help improve its domestic revenue mobilization.

Following several criticisms, the E-Levy tax was reviewed downwards from 1.5% to 1%.

SA/NOQ