Normal Ghanaians must oppose the levy
The E-levy is currently before Parliament
Michael Kpessa-Whyte of the National Democratic Congress has stated that there must be a mass mobilization of all normal citizens to oppose the controversial E-levy currently before Parliament.
According to him, the levy which remains a Bill after lawmakers failed to pass it into law weeks ago, is irrational aside from being anti-business and anti-financial inclusion.
He expressed his views via a December 29, 2021, tweet that read: "We must mobilize every normal citizen of Ghana to oppose the obnoxious e-levy. It is anti-business, anti-financial inclusion, and above all irrational.
"Why would a person paying for an item via momo pay 1.75 tax while another person paying same amount in same shop get exemption?" he asked.
A full house, of 275 Members of Parliament, was present for the December 20, 2021 session meant to consider the controversial E-levy Bill after the Finance Committee voted 13 - 12 to pass it for consideration at the plenary.
Bagbin who presided over the day's session retired after a long day, meaning an NPP MP in the person of Joseph Osei Owusu had to preside, which situation means the count of MPs will be 137 - 137 and in which case a vote will be lost.
As First Deputy Speaker Joseph Osei Owusu vacated his seat for the Second Deputy, ostensibly to enable him to vote on the bill, Minority MPs moved to prevent that from happening, leading to violent scuffles around the seat of the Speaker.
The House subsequently adjourned to January 2022 without passing the Bill.
What Ofori-Atta said about 1.75% levy on electronic transactions
Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.
Fees and charges of government services have also been increased by 15%.
The Finance Minister explained, “It is becoming clear there exists an 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.
"As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.
"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 ¢3000 per month, will be exempt from this levy,” Ofori-Atta revealed.
Michael Kpessa-Whyte