E-Levy will be passed and it will do Ghanaians good – Agric Minister

Passage of E-Levy in limbo

More people need to be roped into tax net, Agric Minister

E-Levy is a noble initiative, Agric Minister

The Minister for Food and Agriculture, Dr. Owusu Afriyie Akoto, has indicated that he is optimistic the electronic transaction levy being introduced by government will be passed.

The controversial 1.75% levy when passed will mean that Ghanaians will pay extra charges on electronic transfers of about GH¢100 daily.

However, since the announcement of the imposition of the levy in the 2022 budget, it has come under various contentions and criticisms as experts say it will erode Ghana’s financial inclusion gains.

But speaking in a Citi News interview, Dr. Afriyie Akoto said “the E-Levy will be passed. I am absolutely confident about that. It will be passed and will do Ghanaians good. It will bring a lot of people outside the tax net into it, which is what any modern state should do.”

He said the only way government can address the insatiable needs of Ghanaians is to make more revenue by way of widening the tax net.

“That only between 12% to 13% of Ghanaians pay taxes is totally untenable, especially by West African standards, where the average is 24%.”

“We need to rope in the people outside the tax net. It is unfair that majority of Ghanaians evade taxes. Meanwhile, our expectation of government services keeps skyrocketing. Where is the money going to come from? It should come from ourselves.”

He stated that the levy should be welcomed by all Ghanaians instead of the resistance it is currently facing.

“It should be praised rather than condemned,” he reiterated.