1.5% levy imposed on electronic transfers
E-Levy not generating expected revenue
Government’s new tax measure the Electronic Transfer Levy is a “failed tax measure”.
This is according to Ningo-Prampram MP, Sam George.
He said the introduction of the E-Levy has reduced the usage of electronic transactions especially, mobile money.
“Last week, the Economic Management Team met with key stakeholders in the implementation of the E-Levy and it is evident that our nation is in crisis. The golden egg we were promised has turned out to be ‘alumi’,” he said.
He added that “Transaction volumes have reduced by about 18% month-on-month and transaction values have declined by about 40%. This is what we warned the government about but our government is tone-deaf”.
A leading member of the New Patriotic Party Gabby Otchere-Darko indicated that the Electronic Transactions Levy (e-levy) has generated less than ¢60 million out of the estimated GH¢600million after almost two months after its implementation.
However, in a tweet Sam George said, “We sounded the caution, we were called naysayers and doom-mongers. We advised against the tax, we were called Jeremiahs and haters. The e-Levy tax is a failed tax measure. No amount of spin can change the fact.”
“Government estimated to collect GH¢4.2 billion in 7 months in 2022 from May – December. This works out to approximately GH¢600 million a month. It would be safe to estimate a daily accrual of GH¢20 million to meet this target.
“Within the first week of the implementation of the e-Levy, the Ghana Revenue Authority and government spokespersons were jubilating that the e-Levy was raking in over GH¢1 million a day from one charging entity.
“I was quick to caution a premature ejaculation of joy as that charging entity accounted for almost 70% of transaction volumes but alas, I was insulted and told I didn’t want to see government succeed.”
“As is the behavior of highly incompetent but arrogant folks, they are seeking to apportion blame to everyone else apart from themselves. From blaming Mobile Money Agents to the Charging Entities, the chickens have come home to roost.”
According to him, the tax is “a government-led Ponzi scheme.”
“The biggest setback in this unfortunate debacle is the roll back of the digital gains and strides that we had made as a Nation since President Rawlings. The sheer incompetence coupled with zealous corruption tinged with a large dose of arrogance is what has served us this poisoned cocktail.”
Sam George disclosed that he had not performed any mobile money transaction since the implementation of the levy.
“I am glad that I have not carried out a single MoMo transaction in the past 9 weeks as a sign of personal protest and in defiance of the insensitivity of our government in imposing the tax.
It appears I am not alone. I salute the many other Ghanaians who are saying enough of the wastage and profligacy in our government. We cannot continue to engage in government sanctioned pickpocketing and expect the citizenry to suffer in silence,” he added.
SSD/MA
Sam George is MP for Ningo Prampram