E-levy: Gov’t will only raise approximately ₵776million not a billion – Nii Yarboi

A Financial Analyst, Mr Michael Nii Yarboi Annan has said government will likely raise only an approximately ₵776million or less from the proposed e-levy instead of the estimated billions reported.

According to him, current data suggest Momo transaction in the country is only valued at ₵2billion with some 377million transactions only and that is woefully inadequate to raise the amount estimated.

He also indicated perception in economics will also play out during the implementation of the policy and persons would be compel to avoid the platform.

 “Now the issue is what are they seeking, a ₵billion  from E-levy or what because Sena the data from bank of Ghana as of September is ₵2billion approximately”.

  “When you are talking about the value in terms of Momo is ₵2billion with 377million transaction that comes to about ₵216 a transaction. Exempting ₵100. What it means is that they seek to tax ₵116 at 1.75% meaning they will raise ₵2 per each transaction multiply by the 377million. We are talking about approximately ₵776million that is what they seek to raise? Because that is what they will raise and they will raise far less because of how perceptions in economic plays out.  People are going to move from using Momo transaction,” Nii Yarboi Annan said.

Nii Yarboi Annan made the comment on Alhaji and Alhaji aired on Pan African Television on Saturday, December 11 and monitored by GhanaPlus.com.

E-Levy

Government of Ghana is projecting some ₵6.9billion from the proposed electronic transaction levy introduced in the 2022 budget statement.

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.

The government of Ghana in its 2021 Budget Statement presented by the Finance Minister, Mr Ken Ofori-Atta on Wednesday, November 17 proposed a 1.75% levy on Momo transactions exceeding ₵100.

According to them, the levy was part of government initiative to rope in the informal sector and also widen the tax net in the country.

Under  the proposed levy, transactions above ₵100  are to attract 1.75% levy and are applicable to senders only.

Source: GhanaPlus.com