Business

Minority Claims; Electronic Transaction Levy will “only increase hardship.”

The Minority in Parliament has vowed to resist the government’s decision to impose a 1.75 percent levy on all electronic transactions.

The 1.75 percent levy was highlighted by the Minister for Finance to be imposed on transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances.

The Finance Minister, Ken Ofori-Atta, during the presentation of the 2022 Budget Statement said, “After considerable deliberations, Government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Transaction Levy or E-Levy.”

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“Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient.

“Mr. Speaker, to safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day (which is approximately GH¢3000 per month) will be exempt from this levy. A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others. Hence, the levy is aimed at enhancing financial inclusion and protecting the vulnerable.

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However, the Ranking Member on the Finance Committee of Parliament,  Cassiel Ato Forson disagrees.

He also emphasized that, the Minority will thus “stand by Ghanaians in opposing the Momo tax.”

Speaking to the press after the Minister’s budget presentation in Parliament, Mr. Forson said the new levy will “only increase hardship and compromise inward remittance.”

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