Government embarks on sensitisation drive for E-Levy
Minority in parliament vow to kick against E-Levy
Agribusiness entrepreneur, John Dumelo, has opined that the implementation of the Electronic Transaction Levy will be counterproductive.
Despite advocating for more domestic revenue mobilisation, John Dumelo believes that the proposed rate of 1.75 percent for the levy is rather high with the risk of jobs losses and will erode gains made towards a cashless economy and financial inclusion.
In a tweet shared on Friday, January 28, John Dumelo proposed a rate of 1 percent and a minimum threshold of GH¢200 for the E-Levy.
“Domestic revenue generation is good, but the implementation of the e-levy will be counterproductive. We will not attain a cashless economy, jobs will be lost, financial inclusion will not be achieved.
"Solution for e-levy at one percent (great contribution to fiscal consolidation), minimum threshold should be at least GH¢200,” John Dumelo suggested.
See Dumelo's tweet below:
Meanwhile, the Government of Ghana has reiterated the need for the introduction of the E-Levy on numerous occasions since its announcement in the 2022 budget statement.
Although a decision to approve the E-Levy is yet to materialize in Parliament, the finance minister [Ken Ofori-Atta] has said revenue from the tax measure will go towards building more roads, creating jobs and opportunities for the youth and reduce the country’s dependence on debt assistance.
But the Minority in Parliament has vowed to kick against approving the E-Levy citing it will place more hardship on the ordinary citizen. Also, a cross-section of the public have bemoaned the introduction of the tax measure.
The E-levy is a new tax measure introduced by government in the 2022 Budget on basic transactions related to digital payments and electronic transactions aimed at widening the tax net and increasing revenue.
The measure, if approved, would place a charge of 1.75 percent on all electronic transactions that are more than GH¢100 daily (24 hours).
This will cover mobile money payments, ATM withdrawals, inward remittances among others.
View his Timepath below:
Agribusiness entrepreneur, John Dumelo