1.75% E-Levy: Charge telcos 1%, consumers 0.75% - John Kwakye

IEA John Kwakye IEA Director of Research, Dr John Kwakye

Mon, 21 Mar 2022 Source: www.ghanaweb.com

Split 1.75% E-Levy between telcos and consumers, John Kwakye

E-Levy bill to be re-laid before parliament

Government holds townhall meetings on E-Levy

Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye, has entreated government to place a 1% tax on telecommunication networks for E-Levy.

Consumers, on the other hand, he said should be charged 0.75%. This, he said, was a way to split the initial 1.75% E-Levy proposed by government.

Speaking on Asaase Breakfast Show on Monday, March 21, 2022, he opined that the delay in relaying the 2022 budget before parliament is due to the opposition of the E-Levy by some sections of the public, including the Minority in Parliament.

“I think it is the E-Levy that has been holding up the budget...That is why I am proposing some kind of compromise, and I said why don’t you split it and charge the telcos 1% and then charge consumers 0.75%," Dr John Kwakye said.

“In other words, I am trying to maintain the level that government has proposed, so that we don’t miss any revenue as a result, …because you know during this COVID era, there are some companies or sectors of the economy that have been booming, they have taken advantage of the COVID," he added.

The announcement of the E-Levy in the 2022 budget has been fraught with several controversies, with many Ghanaians, including the Minority in parliament kicking against it.

The E-Levy bill was subsequently withdrawn from parliament and currently, the E-Levy has been reviewed downwards to 1.5% from 1.75%.

The bill is yet to be re-laid before parliament after its withdrawal.

Meanwhile, government through the information ministry is organising town hall meetings to discuss the Electronic Transaction Levy (E-Levy).

The exercise will also give government feedback on reactions from citizens on the proposed levy and how best to implement it.

Finance Minister, Ken Ofori-Atta, has also warned of dire consequences for the Ghanaian economy if the E-Levy is not passed.

Ken Ofori-Atta urged Ghanaians to support the implementation of the E-Levy.

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Source: www.ghanaweb.com
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