The levy would cover all electronic transactions on digital platforms
Sam George says the NDC would have abolished transactional fees
Member of Parliament for the Ningo Prampram Constituency, Sam Nartey George, has stated that the National Democratic Congress (NDC) would have removed all taxes on transactions on digital platforms if it had won the 2020 elections.
According to him, the initiative would have been introduced to boost the usage of digital platforms considering the number of people who use it for transactional activities.
His comment comes on the back of criticisms that have greeted government’s intention to introduce the electronic transactional levy otherwise known as the e-levy which will cover all transactions on digital platforms.
The law maker believes “it is a silly thing” for a government which says it is building a digital economy to be “trying to put in blockers for people using it [digital platforms]”.
Sam Nartey George disclosed that the NDC, if voted into power in 2020, would have rather scrapped taxes and looked for creative ways to tax the digital economy.
“We the NDC, if you take our manifesto…it was clear. We were actually looking at by way of policy scrap the charges that the telecos especially MTN and it was going to be targeted largely at MTN [why do I say MTN], because all the other networks had moved to free network transactions.
“We believe as the NDC that actually what you should do is to scrap all transaction fees. That will actually get everyone on board and then you can then use creative engineering to go after the digital economy…those who are beneficiaries of the digital economy,” he argued on TV3’s “New Day” morning show.
The announcement of the e-levy to be introduced in 2022 pending approval, has received mixed reaction from the public.
Whiles some believe it will be counterproductive to government’s initiative to digitize the economy, others also contend that the policy will broaden the tax net to include the informal sector.
Meanwhile, the Minority has vowed to oppose the government's move to introduce the levy.
Commenting after the budget presentation, ranking member on the finance committee, Cassiel Ato Forson, indicated that the levy will "only increase hardship and compromise inward remittance."
He mentioned that the Minority will thus "stand by Ghanaians in opposing the momo tax."
Member of Parliament for Ningo Prampram, Sam George