The Minister for Communication and Digitalization, Ursula Owusu Ekuful, has made a str5ong case in support of the E-Levy.
In her view, the e-levy will not erode the gains made in digital transactions as some have suggested.
Speaking at the government’s first town hall meeting in Koforidua on the levy, she likened the public reaction to the E-levy to the Communication Services Tax (CST).
She stated that despite the many criticisms and opposition to the CST, also known as ‘talk tax’, it was passed, and its results have been impressive.
“Our collective experience shows that despite their initial opposition to many of these interventions [including the CST], they’ve proven to be worth the wait,” she said.
The Minister, who also represents the Ablekuma West constituents, posited that it would be prudent for the Minority to support the levy and stop opposing it.
“I appeal to them [minority] to cooperate with government and work with us to pass this levy as well because ultimately, the result that we got from the Communication Services Tax, which clearly didn’t destroy the industry, will also be evident post-implementation of this levy as we all work collectively to enhance access to and use of digital platforms working with Ministry of Finance to ensure that digital financial services become the norm as we strive to become a cash-lite society.”
She averred implementing a tax on mobile money transactions will not make people move to cash-based transactions as argued by those who have opposed the levy.
She used Uganda as an example where she stated that after only a few months of reduced digital financial transactions, mobile money transactions bounced back to become the leading means of transactions.
“When a similar levy was passed in Uganda, transaction values reduced slightly upon the introduction of this levy, but they picked up almost immediately,” she said, adding that she is confident that Ghana will do much better.
About CST
The Communications Service Tax (CST) is one levied on charges for the use of communications services that are provided by electronic communications service providers.
CST is imposed under Section 1 of the Communications Service Tax Act 2008, (Act 754) and CST(Amendment) Act, 2013 (Act 864).
It is paid by consumers to the communications service providers, who in turn pay all CST collected to the Domestic Tax Revenue Division of the Ghana Revenue Authority on a monthly basis.
The GRA is required under the law, to pay the CST collected into the Consolidated Fund.
CST is charged only by electronic communications service providers who are in the provision of electronic communication classified by the National Communications Authority under the provisions of the National Communications Regulations 2003 (LI 1719) and notified in writing by the Commissioner-General of the GRA to charge the tax.
By: Rainbowradioonline.com/Ghana
