E-Levy will prevent online businesses from evading tax – Ursula Owusu

Ursula Owusu Ekuful, Minister Of Communications And Digitalisation90.jpeg Minister for Communications, Ursula Owusu-Ekuful

Fri, 28 Jan 2022 Source: classfmonline.com

Minister for Communications, Ursula Owusu-Ekuful has said online businesses across the country continue to deprive the government of the needed revenue thus the introduction of the e-levy will ensure that such entities contribute to revenue mobilization.

According to the minister, online businesses are out of reach of the Ghana Revenue Authority (GRA), thus do not pay the needed taxes and the e-levy will correct that anomaly.

Speaking in Koforidua on Thursday, 27 January 2022 at a town hall meeting to discuss the government’s proposed e-levy, the Minister noted that the introduction of the levy will create a digital marketplace for both buyers and sellers.

“Businesses have moved from physical locations to online outside the reach of the GRA, depriving the government of the much-needed revenue. We need to revert that and the E-Levy would do that. It would enable the government to build proper digital infrastructure, create a digital marketplace which would connect buyers and sellers.”

The Minister also dispelled assertions that the proposed e-levy will amount to double taxation.

She explained: “When you use a credit or a debit card you pay between two to three percent transaction fees and the levy is on the lower end of the total cost. All bank transfers also attract bank charges so it is not true that this is going to be double taxation or tax our capital as well.”

She emphasized the benefits the levy will have on the country such as the creation of employment opportunities for the youth and ensuring the government achieves the Sustainable Development Goals (SDGs).

“We would have funding for the road construction and maintenance and more reliable payment for existing contracts, to reduce the overall burden on the government. Such infrastructure development would also create more jobs for the youth and cut down on youth unemployment. As YouthStart would also do.

“If the funds are not generated internally, we will either go and beg for aid, borrow and so we cannot continue to go borrow and beg to finance our development. The government is seeking to meet its agenda of Ghana Beyond Aid and this requires all of us to support the E-levy and contribute our quota to national development.

More financing inclusion and digitized empowerment in our society would also ensue. The seventeen Sustainable Development Goals are there for the government to achieve including reducing gender equality, education, providing clean water and sanitation.” Mrs. Owusu Ekuful stated.

Source: classfmonline.com
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