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NDC once imposed 17.5% tax, 1.75% e-levy is the lowest rate ever - Egyapa Mercer

Deputy Energy Minister, Andrew Egyapa Mercer.jpeg Andrew Egyapa Mercer, Deputy Energy Minister

Sun, 23 Jan 2022 Source:

Lawyer Andrew Egyapa Mercer, the Member of Parliament for Sekondi constituency, has urged Ghanaians to support the government's E-levy policy pending Parliamentary approval.

The E-levy is to be rolled out next month ensuring that Ghanaians are taxed on a range of electronic transactions.

A 1.75 percent charge is to be deducted on every 100 cedi MoMo transaction made and also on all bank transfers.

The E-levy has been met with strong opposition from the Minority in Parliament as they have vehemently kicked against its passage into law.

However, the NPP Majority in Parliament is in support of it and is bent on implementing the policy in February as was announced by the Minister for Finance, Ken Ofori-Atta last year during his presentation of the 2022 Budget and Economic Policy before the Legislative House.

Commenting on the E-levy during a panel discussion on Peace FM's ''Kokrokoo'', Lawyer Egyapa Mercer beleived it's the way to go for Ghana's development.

He was optimistic the e-levy will be used to fix the country's developmental challenges like bad roads, inadequate infrastructure and hospitals among others, hence encouraging all Ghanaians to embrace this initiative.

He shot down arguments that the 1.75% should be reduced stressing ''1.75 is 1 cedi 75 pesewas on a 100 cedis. It's 17 cedis 50 pesewas on a 1000 cedis. It's the lowest tax rate ever,'' he submitted.

He also recalled how the NDC years ago introduced a 17.5% Value Added Tax on financial services, which he says was way higher than what is being proposed today.

"Let them propose an alternative, they have been in government before, remember VAT on financial services? Theirs was 17.5% and there was no pandemic and all other expenditures this government has made.

"The difference between 17.5% then and 1.75% now all to allow for development efforts, to among others help government combat youth unemployment," he stressed.

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