Business

E-Levy: Development Economist proposes ‘better’ alternative to govt’s 1.75%….

Development Economist and Director of the West African Centre for Sustainable Rural Transformation (WAC-SRT) at the University for Development Studies, Tamale, Dr. Michael Ayamga-Adongo has proposed what he describes as a “better” way of imposing the much controversial E-Levy by the Government, maintaining that the E-Levy in its current form is unacceptable.

According to him, imposing a flat daily rate of 1 Cedi for transactions exceeding 100 Cedi’s is a better way for Government to benefit from the boom in electronic money transfers( Mobile Money). He clarified that the daily payment of just a Cedi to the Government while with current charges by the service providers is a better alternative to the 1 75% charge on transactions over 100 Cedi’s daily.

A BETTER WAY TO IMPOSE E-LEVY
I have been inundated with messages urging me to offer suggestions instead of criticizing the so-called smart E-Tax. Since I am not just a noise-making serial caller or commentator, I will take the challenge. My advice is for government to go for a daily flat rate with a threshold. For example, if you send less than GHS 100, it should be free. Beyond GHS 100, you pay a flat rate of 1GHS. Once you pay the 1GHS, you can continue sending money as long as it is within 24 hours.

See also  Hmm.. Government Begs Man Whose Camera Captured The Robbers Who Shōt The Pol!ce Man For The Footages

In my opinion, the 1% charge by Telco’s for momo transfers is untenable. The profits from mobile money charges appear to divert the attention of TELCOS from improving voice and data networks. As a result, we continue to experience severe deterioration of networks and connectivity even in cities.
I propose that the same GHS 1 daily flat rate should apply. In short, you pay GHS 2 in charges for mobile transfers beyond GHS 100. GHS1 for government, GHS1 for the service provider.

A BETTER WAY TO IMPOSE E-LEVY
I have been inundated with messages urging me to offer suggestions instead of criticizing the so-called smart E-Tax. Since I am not just a noise-making serial caller or commentator, I will take the challenge. My advice is for government to go for a daily flat rate with a threshold. For example, if you send less than GHS 100, it should be free. Beyond GHS 100, you pay a flat rate of 1GHS. Once you pay the 1GHS, you can continue sending money as long as it is within 24 hours.

See also  Importers Have Barely 24-hours To Clear Goods Before Benchmark Values Are Scrapped

“I have been inundated with messages urging me to offer suggestions instead of criticizing the so-called smart E-Tax. Since I am not just a noise-making serial caller or commentator, I will take the challenge. My advice is for government to go for a daily flat rate with a threshold. For example, if you send less than GHS 100, it should be free. Beyond GHS 100, you pay a flat rate of 1GHS. Once you pay the 1GHS, you can continue sending money as long as it is within 24 hours,” he proposed.

See also  I will not re-establish a bank – Kofi Amoabeng...

“In my opinion,” he continued, ” the 1% charge by Telco’s for momo transfers is untenable. The profits from mobile money charges appear to divert the attention of TELCOS from improving voice and data networks. As a result, we continue to experience severe deterioration of networks and connectivity even in cities.”

Government in the 2022 Budget has proposed a Levy on electronic transactions, including Mobile money transfers, bank transfers and inward remittances. But many have kicked against the move, arguing that it will discourage Government’s digitalization drive.

I propose that the same GHS 1 daily flat rate should apply. In short, you pay GHS 2 in charges for mobile transfers beyond GHS 100. GHS1 for government, GHS1 for the service provider.

Source: MyNewsGh