Member of the National Democratic Congress (NDC) Communication Team, Alex Akuoko, has described the e-levy as double taxation to be suffered by Ghanaians.
He says the e-levy will not help the country. “The taxes the government takes to help in developing the country does not go into the country’s development projects. We should ask ourselves what will be effect of the tax on Ghanaians in terms of standard of living.
1.75 % on all electronic transactions are double taxation. The idea of money being electronic per the e-levy is by paying 1.75% plus VAT on all items bought which brings in the double taxation.”
Speaking on a panel discussion on the Epa Hoa Daben talk show hosted by Happy98.9FM’s Don Kwabena Prah, he said the e-levy should completely be taken out of the budget so that the budget can be passed. “After that we can now present our proposal in the form of bill on the e-levy. Then the debate can start to reshape the idea of the e-levy to help everyone.”
“To me, the tax on the e-levy should be retrieved and get all the stakeholders involve for everyone’s benefit. We have made our stand on this issue very clear and until that is done, the budget as it is has not been passed. That is why we have filed for a motion on the floor of parliament. The budget with the e levy as it is now we will not support it but if the e levy is taken out, then we can let the budget go.”
The electronic levy tax measure is a digital mode of transaction which includes online banking and mobile money payment. The new electronic levy of 1.75% will apply to transactions that are more than GHC100 on a daily basis.
Ghana’s finance minister Ken Ofori-Atta has announced that the government intends to introduce an electronic transaction levy (e-levy) in the 2022 budget. He said this was to “widen the tax net and rope in the informal sector”.
The proposed levy, which will come into effect on 1 February 2022, is a charge of 1.75% of the value of electronic transactions. It covers mobile money payments, bank transfers, merchant payments, and inward remittances. The originator of the transactions will bear the charge except for inward remittances, which will be borne by the recipient. There is an exemption for transactions up to GH¢100 ($16) per day.
