Hon Kwasi Etu-Bonde Writes.
A business such as Fuel Station, Iron Rod, Provisions and Cement Dealership involves transfer of large sums of money on weekly basis as well as dependent on Loans and Overdraft facilities from Banks.
Using Cement Dealership as my case study it came out as follows.
A Cement Dealer who order an articulator truck load of 1,200 bags a week through an Electronic Transfer at a cost of GHC 50,000 per truck load of Cement with an Overdraft or Loan from a Bank at Interest rate of 20% per Annum works out as this.
Weekly E-levy Cost =GHC50,000 x 1.5% or (0.015)= GHC 750 per week.
If the Dealer operates 48 out of the 52 weeks in the year, then his/her Total E-levy Cost per Year is GHC 750 x 48 = GHC 36,000 per year. This comes to 72% of the GHC 50,000 Loan or Overdraft or Working Capital.
The Dealer Interest on the Overdraft or Loan at 20% is
GHC 50,000 x 20% (0.2) = GHC 10,000
Therefore the Dealer’s E-levy and Interest Cost per Year on GHC 50,000 Overdraft or Loan is
GHC (36,000+10,000) = GHC 46,000 per year. This comes up to 92% of the Working Capital.
The Business that started with Working Capital of GHC 50,000 from Bank Loan is now left with ONLY GHC 4,000 to pay for the Loan, Operations Cost and Profit.
A prudent Business will pass on the E-levy Cost to Consumers. That will also Worsen the Hardship of the Citizens.
This will mean the E-levy Cost per Year of GHC 36,000 will be added to the Cement Buyer and the Cyclical Hardship and Collapse of Household and Business Economy will be the Order of the Day
No Religion is HIGHER THAN TRUTH.