E-levy should be time bound if accepted – Dr Mawutor

A Senior Lecturer of the University of Professional Studies (UPS) in Accra, Dr Kweku Mensah-Mawutor has recommended the proposed e-levy should be time bound if accepted.

That he said was because the e-levy according to the budget is to fulfill a certain purpose and once such is achieved would no more be appropriate for government to hold on to it.

He again said e-levy defies all principles of taxation hence the need for it to scrapped immediately it intended purpose is achieved.

“For me, I am even interested in not keeping this tax forever .It should be time bound. We want to address an issue, once we meet that target, we should just cancel this tax because you are taxing peoples capital. Why should I suffer for transferring money to you which you are going to consume?” he said.

Dr Mawutor made the recommendation on Pan African TV’s current affairs programme, Good Morning Africa on Wednesday, monitored by GhanaPlus.com.

He made the recommendation why contributing to discussions on the proposed e-levy introduced by the Akufo-Addo led government in it fiscal and financial statement for the year 22.

Reduce 1.75% e-levy rate – Dr Mawutor

He also called for a reduction in the 1.75% rate at which government intends to tax users adding that it is very high.

“The rate involved, the rate is so high, the 1.75%, they should do something. CSO have come out and you see this government enjoy this goodwill of Ghanaians that everybody understands that you are going through financial crises. It is true, the budget tells everything and even there are people who are doing the education on behalf of government and they are telling you that please the 1.75 is too much so do something about it. Look you can’t have your way whenever you want to do something. It is very very important that government should do something about the rate”.

Gov’t of Ghana introduce Momo Tax

The government of Ghana in its 2022 Budget Statement  announced a 1.75% electronic transaction levy applicable on all MoMo transaction exceeding ₵100.

The levy, according to the Finance Minister who presented the budget to Parliament on Wednesday, November 17 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.

The levy has however been rejected by Ghanaians as well as the Minority Group in Parliament.

Source: GhanaPlus.com