E-Levy: Online businesses decry increasing cost of business

E Levy E Levy Electronic Transfer Levy1.png 1.5% levy on electronic transactions

Thu, 9 Jun 2022 Source: www.ghanaweb.com

I.5% levy to be charged on electronic transactions

Online businesses are easily monitored, E-commerce Association

E-Levy must be discontinued, Association

The E-Commerce Association of Ghana has lamented the impact of the electronic transaction levy on their cost of business.

According to the Association, if the cost of doing business for its members keeps increasing, they may be forced to seek refuge in other countries with favorable tax systems.

Executive Director of the E-Commerce Association of Ghana, Paul Asinor, in a JoyBusiness interview noted that engagements need to be had with the government to ensure that the levy is discontinued.

“We do not want an instance where government will keep increasing the E-levy and see it as an easy way to increase revenue. We want to stop it now in the budget because it will affect our business. If the cost of doing business continues to increase, businesses will gradually reduce their investment and look outside where operations are less costly,” he said.

Asinor however stated that government needs to engage members in the E-commerce sector in order to address the challenges they are faced with currently.

“We actually think that government must engage us to discuss a number of issues affecting the sector. This e-commerce sector is a vibrant area that can fetch government a lot of income if activities in the areas are streamlined”.

He debunked claims that suggest that online businesses evade taxes, emphasizing the need to improve the working conditions of online workers.

“That perception is a myth because online businesses are easily monitored and made to pay taxes. I have just told you about e-levy and how it affects our business”, he stressed.

“We are aware of the low incomes that online workers receive, and so we are engaging the relevant stakeholders. We will finalize our recommendations soon for government to consider in designing a sustainable policy”, he said.

Source: www.ghanaweb.com
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