Ghanaians and some lawmakers have kicked against e-levy
SEND Ghana calls for a graduation of the tax rate
Civil society organisation, SEND Ghana has called on government to provide a clear timeline for the implementation of the proposed electronic transaction levy.
According to SEND Ghana, government in the just presented 2022 budget statement has provided two separate dates for implementation of the 1.75 percent levy covering all electronic transactions.
Speaking during a media engagement to provide its analysis of the 2022 budget, Deputy Country Director of SEND Ghana, Dr. Emmanuel Ayifah called for broader stakeholder consultation and possible modification of some elements of the proposed levy.
“One thing we are actually confused about is the effective date for implementation of the e-levy. In the 2022 budget statement, the date for implementation is captured for January 1, 2022, while another page of the budget states February 1, 2022. We need to know which is which and so it’s important for government to come clear on that in order to inform the expectation of people.”
“The budget is a very important document hence such inconsistencies must not be contained in them,” Dr Ayifah stressed.
Touching on the impact of the e-levy on citizens and businesses, the SEND Ghana Country Director said efforts made to digitize the economy will be eroded if careful considerations are not made prior to the implementation of the e-levy.
“Our concern is to look at where the burden of this tax source is going to impact and equity considerations are key and if we don’t take care with its implementation. Our efforts as a country to digitize will be affected that is where I think government must critically look at and the fact that the masses which are mainly the poor use the mobile money platform,” he explained.
He further called for a graduation of e-levy rate which many believe is rather high and could significantly impact the cost of transactions.
“We also think that government should graduate the proposed 1.75 percent rate for the e-levy and so we are proposing a zero percent rate for transactions up to GH¢100 but beyond that, we are expecting a graduation of 0.5 percent and then move one 1.5 and it continues. This graduation we believe should also be dependent on the quantum of money.”
The Finance Minister, Ken Ofori-Atta on November 17, 2021 announced the introduction of the Electronic Transaction levy, which will be waived for transactions that amount to GH¢100 or less in a day or approximately GH¢3,000 per month.
The implementation of the proposed levy has been widely criticised by a section of the public and lawmakers in parliament.
Parliament has however asked the finance minister to review the tax policy prior to the passage of appropriation for the 2022 Budget Statement by the House.
