2023 Budget: Review of E-Levy is a diabolic reduction – Bright Simons explains

The vice president of IMANI Africa, Bright Simons, has berated the government for its proposal to remove the daily limits to electronic money transfers that will attract the Electronic Transfer Levy (E-Levy).

The Minister for Finance, Ken Ofori-Atta, has announced a proposal to review the Electronic Transfer Levy (E-Levy) from its current rate of 1.5 per cent to 1.0 percent.

In addition to the reduction of the rate, Ofori-Atta also proposed the removal of limits on transfers that will attract the levy.

“Review the E-Levy Act and more specifically, reduce the headline rate from 1.5% to one percent (1%) of the transaction value as well as the removal of the daily threshold," he said.

Reacting to this, Bright Simons said that the government is proposing to reduce the rate of the levy only to charge it on all transfers.

He also bemoaned the failure of the government to engage stakeholders on the move and also for increasing Value Added Tax by 2.5 percent.

“2.5% increase in the broadest-based consumption tax. And a clever-diabolic reduction of the E-Levy rate in exchange for a more pernicious abolishment of all thresholds meaning every transaction gets charged. No consultations aforehand in the least!” parts of a tweet he shared read.

Should the proposal of the finance minister be approved by Parliament, all electronic money transfers will be charged.

In other words, the threshold of only accumulative transfers exceeding GH¢100 a day being eligible for E-Levy deductions will be removed.

So, if you send just GH¢5, GH¢1 or GH¢50 you will be charged E-Levy.

View Bright Simons tweet below:

4/

So they've done it!

2.5% increase in the broadest-based consumption tax. And a clever-diabolic reduction of the e-Levy rate in exchange for a more pernicious abolishment of all thresholds meaning every transaction gets charged. No consultations aforehand in the least! pic.twitter.com/SYPDgGlDTx

— Bright Simons (@BBSimons) November 24, 2022