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Business News Tue, 14 Dec 2021

No private company will collect revenue from proposed E-levy – Finance Ministry

Consensus yet to be reached over proposed e-levy

1.75 percent tax slapped on all electronic transactions

GRA mandated to collect funds generated from levy


The Ministry of Finance has debunked claims that a private company has been awarded a contract to collect funds generated from the proposed electronic transactions levy.

A statement issued by the ministry on December 13 said the revenue arm of government, the Ghana Revenue Authority is the mandated agency to collect revenue from the e-levy.

Reacting to publications circulating on social media indicating that government has dropped a GH¢241 million allocation for the levy, the Ministry affirmed the claims were untrue.

“The attention of the Ministry of Finance has been drawn to social media publications claiming that government has dropped the allocation of GHC241,933,000 for the E Transaction Levy Services in the 2022 Budget and it will, therefore, not appear in the Appropriations Bill," the statement said.

"Additionally, the Ministry is aware of allegations making the rounds that a private company has been awarded a contract to collect the E-Levy. Another allegation is that the services of the said private company have now been abrogated.

"The Ministry of Finance wish to state that these allegations are all untrue,” it added.

Meanwhile, there has been contention among lawmakers in parliament and the general public since the announcement of the proposed e-levy of which many have called for it to be scrapped or percentage reduced.

Ken Ofori-Atta when delivering the 2022 budget statement in November announced the 1.75 percent levy slapped on electronic transactions covering mobile money, ATM withdrawals and inward remittances.

Despite some modifications made in the 2022 budget statement, a consensus on the e-levy is however yet to be reached.

Read the Finance Ministry’s statement below:

PRESS RELEASE

FOR IMMEDIATE RELEASE

IGNORE MEDIA PUBLICATION ON GHC241M E-LEVY TRANSACTION SERVICES


1. The attention of the Ministry of Finance has been drawn to social media publications claiming that government has dropped the allocation of GHC241,933,000 for the E Transaction Levy Services in the 2022 Budget and it will, therefore, not appear in the Appropriations Bill.

2. Additionally, the Ministry is aware of allegations making the rounds that a private company has been awarded a contract to collect the E-Levy. Another allegation is that the services of the said private company have now been abrogated.

3. The Ministry of Finance wish to state that these allegations are all untrue.

4. The Ghana Revenue Authority (GRA) is the state agency mandated to provide for the collection services, the cost of which shall not exceed the standard of revenue mobilization as has always been the practice. This standard indicative cost is what is outlined in the budget. GRA will manage all discussions to ensure full deployment of their current platforms and resources for the collection of the E-Levy.

5. On 6th December 2021, the Hon. Minister for Finance provided full clarification on the earmarking of GHC241m as the E-levy services fee. For avoidance of doubt, and to prevent further misinformation, we reproduce the relevant sections of the Minister's statement.

6. "We do have an understanding with the Ghana Revenue Authority which uses up to 3% of the money it raises for ensuring that they can make such collections. The GH241 million is therefore a reserve that is intended to be put aside to facilitate GRA's collection of these resources", to quote the Minister.

7. "Additionally, typically when we have new tax measures, there is the issue of refunds and we usually make some compensation for that, sometimes 6% or so of the value to ensure that if those refunds come, we are able to pay for them", the Minister added.

8. "So, in essence, this really will be to back up GRA in a way to ensure that all the problems that people envisage and the difficulties other countries have had will be mitigated in Ghana, so we should be in readiness to support that."

9. We wish to reiterate that, the E-Transaction Levy remains one of the efficient means by which Government would be able to raise the needed revenue to support the economic development programmes for 2022. We count on your support.

ISSUED BY THE PUBLIC RELATIONS UNIT MINISTRY OF FINANCE
Source: www.ghanaweb.com
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