Tax Expert, Dr Joshua Bampo, has advised government to refrain from considering a review of the 1.5% tax on all electronic transfers above GH¢100 in a day.
According to him, the time was not right for government to withdraw the tax policy amidst the current economic crisis and increased debt rate.
His comment was on the back of the Finance Minister, Ken Ofori-Atta’s announcement of a review of the E-Levy policy at a press briefing in Accra.
Speaking on TV3’s Ghana Tonight show, the tax expert stated that the introduction of the E-Levy was to rake in more revenue for government and to finance most expenses captured in the 2022 budget.
He pointed out that, “This will not be the right time for us to make a case for a withdrawal of the E-Levy. We all know where we are as a nation in terms of economic challenges we are facing, the E-Levy was part of our revenue budget in order to use to meet our budgeted expenses."
“If you look at our current budget, just financing of it is in debt and payment of public salaries, it takes a big chunk of that projected revenue…You are then left with almost little for capital projects that are needed to stimulate the economy and create job opportunities. So taking away or withdrawing E-Levy I don’t think it is something that should be considered at this point,” he added.
It would be recalled that the Finance Minister, Ken Ofori-Atta, on Wednesday, September 28, 2022, hinted that government will soon review the Electronic Transfer Levy (E-Levy).
The proceeds from the E-Levy, he said, were woefully below projected numbers with only about 10% of the projected GH¢600 million monthly being realized.
Speaking at a briefing in Accra on Wednesday, September 28, 2022, Ken Ofori-Atta said that the review of the E-Levy forms part of measures to help improve the government’s domestic revenue mobilisation.
He added that the review will also rope in many Ghanaians in this tax policy.
Ken Ofori-Atta, Finance Minister