Executive Director of Danquah Institute, Dr. Antoinette Tsiboe-Darko believes although the e-levy proposed by Finance Minister, Ken Ofori-Atta at the 2022 budget reading is in order, she has however advised the government to rethink the rate.
She disclosed that the exemption on transactions of Gh₵100 or less daily and Gh₵3,000 per month is laudable, and urged the government to peg the charge on a transactional basis, “depending on the financial strength of the sender.”
Finance Minister, Ken Ofori-Atta announced a new levy to be charged by government in 2022 on all electronic transactions to widen the tax net and rope in the informal sector.
“It is becoming clear there exists enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the ‘informal economy’,” Ken Ofori-Atta observed on Wednesday, November 17 as he presented the 2022 budget statement in Parliament.
“After considerable deliberations, government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the ‘Electronic Transaction Levy or E-Levy’.”
He explained that the new E-levy will be a 1.75% charge on all electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances to be borne by the sender except inward remittances, which will be borne by the recipient.
In an interview with Happy98.9FM’s Don Kwabena Prah on the Epa Hoa Daben political talk show, she stated, “We can also make the e-Levy a transactional tax so that citizens will pay the levy depending on how much each person is sending and their financial strength.”
Although she argues the government placed the 1.75% levy on electronic transactions after thorough deliberations with economic policy experts, Dr. Tsiboe-Darko insists the government can still understudy other countries which have implemented similar policies.
With the Information and Communication industry booming, especially in the midst of the COVID-19 pandemic, the Executive Director of the Danquah Institute says the introduction of the e-levy will broaden the country’s tax net, making it all inclusive.
