Read full articlehas stated that the digitalization lecture delivered by Vice President Mahamudu Bawumia was psyche Ghanaians for the electronic levy contained in the 2022 budget.
Making submissions on Metro TV’s Good Morning Ghana programme, Kwakye Ofosu said the lecture was to create the impression of something big to come and that thing came in the form of the tax.
According to him, the E-levy that has become known as the Mobile Money (MoMo) tax was one of three tax measures that were regressive and draconian and set to increase the hardship that Ghanaians are currently suffering.
“That whole hoopla around digitalization at Ashesi was to prepare our minds for this Bawumia tax. It was to create the impression of some major shift, some seismic activity to justify the need to pay taxes.
“And it is little wonder why people have called this Bawumia tax, because that is what it is. That whole digitalization propaganda was intended to provide a rationale for levying Ghanaians on this particular matter,” he added.
He stressed further that the 1.75% levy on electronic transactions, MoMo, bank transfers, inward remittances and merchant payments “will be catastrophic.”
What Ofori-Atta said about 1.75% levy on electronic transactions
Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.
Fees and charges of government services have also been increased by 15%.
The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.
"As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.
"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 ¢3000 per month, will be exempt from this levy,” Ofori-Atta revealed.
