The Minister for Finance, Ken Ofori-Atta, has disclosed that the government will continue engagements with the minority in parliament and other stakeholders including mobile network operators on the proposed 1.75% E-levy introduced in the 2022 budget statement.
Addressing a press conference on Monday, December 6, 2021, he said there was the need for a consensus since the levy would be beneficial to the state.
He said “having regard to its serious fiscal implications, we will continue our consultation with the minority caucus in parliament and other relevant stakeholders with the view to achieving consensus and reverting to the house in the shortest possible time.”
He reiterated that tax to GDP ratio in Ghana is one of the lowest on the continent.
This he noted calls for ways to improve upon it to bring it to par with the average ratio on the continent.
“E-levy represents our greatest opportunity to in the medium term broaden the tax base and meet the tax to GDP ratio of 20% as pertains to our peers.”
He further added that the government would ensure that people do not evade ten E-levy if the implantation starts.
“We shall also ensure that measures will be taken to avoid attempts at evading the e-levy taxes. The proposed e-levy tax is largely progressive, and we have intentionally set the GHS 100 threshold covering about 40% of MoMo users, mindful of the need to exempt vulnerable groups while continuing to encourage the development of our nascent digital economy,” he posited.
The proposed levy, which will come into effect on 1 February 2022, is a charge of 1.75% of the value of electronic transactions.
It will mobile money payments, bank transfers, merchant payments, and inward remittances.
The originator of the transactions will bear the charge except for inward remittances, which will be borne by the recipient.
There is an exemption for transactions up to GH¢100 per day.
By: Rainbowradioonline.com/Ghana
