General Secretary of Traders Advocacy Group Ghana (TAGG), Yaw Poku, has bemoaned the rate at which traders are unhappy over the passage of the controversial Electronic Transfer Levy (E-Levy).
According to him, traders have decided to switch to cash-based transactions instead of electronic transactions to avoid the payment of E-Levy.
In an interview with Citi Business News, Mr Poku said, “People are not happy generally. The traders are not happy at all. And it’s as if when we talk, they just refuse to listen, so they’ve also taken their decision that they will move back to cash-based transactions.”
“This law (E-levy) seeks to direct that a token is taken from the seed money that I’m using for my business. Some of us have started sourcing locally because the Ministry of Trade per the advice they give is to source from the local industries and work. But in this situation, you’re redirecting our attention to foreign sources again because, with that, I’ll carry my money by air and then go and transact my business,” he added.
Finance Minister, Ken Ofori-Atta, on Tuesday, March 29, moved the motion for the passage of the E-Levy bill in Parliament at a revised rate of 1.5%
Parliament approved the E-Levy Bill after the Consideration Stage was completed by a Majority-sided House. It was considered under a certificate of urgency.
The 1.5% levy will be charged on electronic transfers of about GH¢100. It's a move by goverment to widen the country's tax net.
Meanwhile, Agribusiness entrepreneur, John Dumelo, has asserted that the introduction of E-Levy defeats government's digitalization agenda of having a cashless economy.
According to him, Ghanaians would devise a means to swerve this tax measure when it is finally operationalized in May this year.
He entreated government to stop tax exemptions and look for ways to raise domestic revenue for the country.
In a Facebook post sighted by GhanaWeb, John Dumelo said, "E-Levy is about to defeat the purpose of a cashless economy. Panic withdrawals will soon happen and people will find legally smart ways to avoid the system. There are better ways to raise revenue. Stop tax Exemptions, Block corruption loopholes!!!"
Local currency, Cedi