Three NDC MPs in court to challenge passage
President Akufo-Addo signs Bill into law
The Electronic Transfer Levy (E-Levy) Bill is now law following the assenting to it on March 31 by President Nana Addo Dankwa Akufo-Addo.
The tax bill has proven one of the most divisive pieces of legislation under the Fourth Republican Constitution.
The Minority caucus has all through insisted that the tax measure was among other things a lazy approach to raising revenue and was aimed at further burdening suffering Ghanaians.
E-Levy started its journey from the 2022 budget and arrived at its destination i.e. on the President’s table and at the receiving end of his pen tip.
That being the case, Ghanaians will have until May 1 onwards to start feeling the joy of paying it (for supporters) and or the pain of paying or going around it (for opponents.)
GhanaWeb looks at five key dates that have defined the journey of the E-Levy
March 31 – Akufo-Addo assents to E-Levy Bill
Two days after its passage by a one-sided Parliament, the Bill was signed into law by President Akufo-Addo who had a day prior, thanked lawmakers for accepting to approve it.
March 29 – E-Levy Bill passed
The E-Levy was passed on Tuesday, March 29, 2022; after it was tabled under a certificate of urgency. The Minority side after debating the second reading staged a walkout with the reason that they did not want to have anything to do with the Bill.
Finance Minister, Ken Ofori-Atta proposed a number of amendments to the Bill, with the most significant one being the lowering of the E-Levy rate from 1.75% to 1.50%.
December 20, 2021: Fight breaks out in Parliament over E-Levy
On the said date, MPs were taking votes on whether or not the E-levy should be adopted under a certificate of urgency.
At the time, First Deputy Speaker, Joseph Osei-Owusu, who was presiding stated that he was stepping down to vote so, the Second Deputy Speaker should take over.
The Minority had earlier contended that per parliament’s standing orders, the Speaker of Parliament does not have a casting vote, however, Joe Osei-Owusu indicated that he would still vote.
Just when he was about to step down for the Second Deputy to take over, the Minority took the stage. In the process, the Minority clashed with the Majority with members of both sides exchanging blows.
December 6, 2021: Ofori-Atta modifies E-Levy in letter to Bagbin
The E-Levy was one of five major issues on which the government through Finance Minister, Ken Ofori-Atta, made modifications in a letter to Speaker Alban Bagbin.
The letter read in part: “On the matter of the E-levy, having regard to its serious fiscal implications, we will continue our consultations with the Minority Caucus in Parliament and other relevant stakeholders, with a view to achieving consensus and reverting to the House in the shortest possible time.”
November 17, 2021: E-Levy announced in 2022 budget
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 for 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.
