E-levy: 1.75% is too high; reduce it

Governance Lecturer at the Central University, Dr. Benjamin Otchere-Ankrah, has called on government to reconsider the e-levy rate on electronic transactions announced by the Finance Minister, Ken Ofori-Atta during his presentation of the 2022 Budget Statement and Economic Policy.

The Finance Minister, reading the budget at Parliament, disclosed government’s decision to abolish all road tolls and the introduction of the e-levy ensuring every Ghanaian pays tax on mobile money and bank transfers.

A 1.75 percent charge has been proposed by the Minister and awaits Parliamentary approval.

“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.’ Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient”.

“Mr. Speaker, to safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day (which is approximately GH¢3000 per month) will be exempt from this levy. A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others. 3y3 Baako, Ye nyinaa bey tua. Mr. Speaker, this new policy also comes into effect (once appropriation is passed) from 1st January, 2022. Government will work with all industry partners to ensure that their systems and payment platforms are configured to implement the policy,” he said.

Dr. Benjamin Otchere-Ankrah has welcomed the e-levy opining that it’s a good initiative.

According to him, in principle, he is not against the levy provided it will be used for its intended purpose.

However, his issue has to do with the 1.75% which he says it’s high for the start, so calling for a review of the amount.

He believes lot of Ghanaians, like himself, will have no problem paying the levy if it is made moderate for all.

”For me, the 1.75 is too high. Can we reduce it to 1 percent or 0.8? I will be the last person to say we shouldn’t pay tax” but the amount needs to be reviewed, he said on Peace FM’s morning show ”Kokrokoo”.

#Elevy #high #reduce

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