E-Levy: Countries we borrow from are paying 10 percent E-Levy – Ursula Owusu

UK pays 10 percent digital tax – Communication minister

CST was introduced at a higher level – Ursula Owusu

Prediction of doom for CST did not happen

Communications Minister, Ursula Owusu-Ekuful has urged Ghanaians to support the E-Levy since the 1.75 percent rate is way below the rate being charged by some advanced countries.

The minister who was speaking at a town hall meeting in Koforidua, said countries that Ghana borrows from were paying electronic transaction charges way above Ghana’s proposed 1.75 E-Levy.

“In other countries, digital taxes are being introduced at the rate of up to 10% and they’re paying. That’s the UK. And we go there and seek loans from them to finance our development. When we are not paying the requisite taxes that we should,” Ursula Owusu stated.

The minister who is the member of parliament (MP)

for Ablekuma West, also said previous taxes by governments to propel development such as the Communications Service Tax (CST) were introduced at much higher rates.

“In 2008, the government of President Kufuor introduced the Communications Service Tax in August of that year, and it became another source of income for national development. That tax was introduced at a rate of 6%, which was later increased to 9%. E-levy is being introduced at the lowest rate for any tax in Ghana, comparatively at 1.75%. Less than 2%,” she added.

Ursula Owusu further stated that the opposition, National Democratic Congress (NDC) made wild predictions when CST was introduced but all the negative predictions they made did not happen.

“When the Communication Service Tax was introduced, it faced similar opposition as we are seeing currently. And the current speaker dubbed it as ‘talk tax’, as the NDC and the industry led by the GSMA data claimed that it would damage the growth of the telecommunications industry as consumers will change their mobile communications habit. This did not happen. They were unfounded fears,” she said.