The budget includes a new tax policy dubbed Electronic Transaction Levy
Sam George believes the introduction of E-Levy is an act of desperation and cluelessness
Parliamentary Select Committee on Communications member Samuel Nartey George has accused the current government of losing its focus on digital inclusion.
The Minister for Finance, Ken Ofori Atta, presenting the 2022 financial budget statement on the floor of parliament on Wednesday, said the government had committed itself to ensuring that all Ghanaians are included in national development using digital opportunities.
But reacting to the minister’s statement in a Facebook post, Sam George, the Member of Parliament for Ningo Prapram, said the government must have lost it on digital inclusion with the introduction of some new taxes.
According to the MP, introducing a new tax policy termed Electronic Transaction Levy (E-Levy) by the government in the budget rather gives the government off as extremely desperate and clueless.
“The Nana Addo Dankwa Akufo-Addo government has clearly lost the plot. How do you introduce a tax on electronic transactions and turn around to claim you are driving digital inclusion? Extremely desperate and clueless governance on display,” Sam George wrote.
Delivering the 2022 budget statement before Parliament on Wednesday, the minister said, “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 for inward remittances, which will be borne by the recipient,” he explained.
He, however, added that to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day (which is approximately GH¢3,000 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,” the minister told the House.
Member of Parliament for Ningo Prampram, Samuel Nartey George