E-levy not needed now, imposition is sign of insensitivity - Asiedu Nketia

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Mon, 29 Nov 2021 Source: peacefmonline.com

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NDC’s Johnson Asiedu Nketia says the introduction of the electronic levy (e-Levy) on mobile money (MoMo) and other digital transactions by the government in the 2022 budget is absolutely “needless"; for now.

He said the recent hardship on Ghanaians with the E-levy introduction will worsen the situation after the government failed to fulfill its heaven on earth’ promises.

To him, perhaps in the future when the economy is stable, the E-levy can be reintroduced.

“E-levy is not needed now, that is my argument. I am not saying perpetually electronic transactions should not be taxed in future....but currently in such challenging times, it is a mark of insensitivity to impose this tax,” NDC’s General Secretary, John Asiedu Nketia said in an interview with NEAT FM.

E-Levy To Widen Tax Net

Finance Minister Ken Ofori-Atta, last week, announced that the government intends to introduce an electronic transaction levy (e-levy) in the 2022 budget.

He said this was to “widen the tax net and rope in the informal sector”.

Reservations About E-Levy

But several Ghanaians have expressed concern over the proposal.

They said the introduction of the levy in the 2022 Budget would compound the high cost of living in the country.

E-Levy Details

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 covers 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 ($16) per day.

According to the finance minister, the total digital transactions for 2020 were estimated to be over GH¢500 billion (about $81 billion) compared to GH¢78 billion ($12.5 billion) in 2016. The huge growth in just five years.

Difficult Times Currently

However, the move has been criticised by many people, with some saying levies were taking all their earnings and making cost of living very high.

The NDC, together with some opposition parties, appear to be in that bracket.

Source: peacefmonline.com
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