The 1.75% rate has been reduced to 1.5%
Minority Caucus has rejected the idea of E-Levy
John Kumah, a Deputy Finance Minister, has indicated that reducing the 1.75% of the Electronic Transaction Levy (E-Levy) to 1.5% should not make people feel like not using mobile money, otherwise known as Momo.
According to him, the government will in the coming days reintroduce the 1.5% rate of E-Levy to Parliament despite the rejection by the Minority Caucus and the strong opposition from a section of Ghanaians.
GhanaWeb monitored the minister’s comments on Citi FM’s ‘The Big Issue’ programme where he reiterated that, the Nana Akufo-Addo government is confident in the plan he has with respect to the E-levy.
He stressed that the controversial Electronic Transaction Levy (E-Levy) will eventually benefit Ghanaians because the robust infrastructure government want to embark on are for Ghanaians at large.
“We believe the 1.5% that we have in terms of the analysis that we have…is more robust and has been developed to a point that government can come in with an intervention without seeing the negative impact that has happened elsewhere.
“Why would an extra 1.5% make people feel like they are no longer going to [use mobile money] when they know the extra 1.5% is even to their own benefit because, at the end of the day, these taxes are for you and me,” John Kumah said.
GhanaWeb sources indicate that, the government as part of his consensus-building process met with the Minority Caucus on Friday, January 28, where the reduction of the levy from 1.75% to 1.5% was rejected.
The 1.5% reduction of the E-levy, GhanaWeb understands was informed by concessions from the telcos to reduce their 1 percent charge on transactions by up to 0.25%.
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About the E-Levy
On November 17, 2021, Finance Minister, Ken Ofori-Atta, announced the introduction of a 1.75% tax on all electronic transactions during the 2022 budget presentation before parliament.
According to him, this new directive forms part of strategies to widen the country’s tax net.
He added that the 1.75% tax is also to enhance financial inclusion and protect the vulnerable in the country.
The E-levy since its announcement by the Finance Minister has received public backlash from some Ghanaians especially Members of Parliament from the Minority Caucus.
At a recent press conference, the Minister outlined a number of modifications to the Bill and announced that the government continued to engage stakeholders on the bill ahead of resubmission before MPs.
