Gov’t reduce e-levy rate to 1.5%

Government of Ghana has reduced the rate of the proposed electronic transaction levy, e-levy rate from 1.75% to 1.5%.

3news.com  report sighted by GhanaPlus.com said the reduction follows a meeting between the Finance Minister, Mr Ken Ofori Atta’s  and the leadership of the Minority group in Parliament on Friday, January 28.

The minority is however still opposed to the levy despite the reduction, the report said.

Government of Ghana is expected to raise some projected ₵6.9billion from the levy which seeks to tax  1.75% on mobile money transaction above ₵100 and applicable to senders only.

The Deputy Finance Minister, Dr John Kumah in an interview on PM Express said the figure is based on initial projections done by revenue officials and the Ministry.

Mr Ofori- Atta in presenting the budget said the initiative is to help widen the tax net and rope in the informal sector into the country tax system.

“After considerable deliberations, the government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Transaction Levy or E-Levy”, Mr Ofori-Atta told Parliament.

Monies generated from the levy, government said will be use to finance its 2022 flagship programme, You Start and an initiative to support young people to venture into entrepreneurship and also road infrastructure projects.

Ghanaians reject e-levy

However, since the announcement, the levy has received stiff opposition from Ghanaians, the opposition National Democratic Congress(NDC) and the Minority in Parliament.

Already two separate physical fights have taken place in the country’s Parliament all because of the e-levy.

A group led by the political activist and former Chairman of the People’s National Convention (PNC), Mr Bernard Mornah have also embarked on a demonstration about same.

Despite the agitations, government is still hell bent on implementing the levy and hae subsequently held several meetings with stakeholders to reach common ground.

Source: GhanaPlus.com