E–Levy: Stop the ‘state blackmail’ on Ghanaians – Ato Forson fires government

Government proposes E-levy to widen tax net

MPs divided over new tax measure

Mobile Money operators express concern over E-levy

Ranking Member on Parliament’s Finance Committee, Dr. Cassiel Ato Forson has hit hard at the government over the continuous touting of the E-levy as the solution to economic challenges of

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In an interview with Accra – based Joy FM, the Ajumako Enyan Esiam MP berated government officials for the several things they have said the E-levy can do.

He maintained that Ghana’s challenge was not revenue mobilization but rather expenditure.

Citing the president’s luxurious private jet travels, he urged the government to cut down on discretionary expenditures.

Dr. Cassiel Ato Forson said the Minority has worked with the government to approve all tax measures besides the controversial E-levy.

He urged the government to be forthright with challenges confronting the country.

“The budget has two sides. Expenditure and revenue. Government must also be responsible enough to cut some discretionary expenditures.

"Assuming in the same period that we are in, the private jet is still flying…expenditures are still happening…discretionary expenditures are still ongoing, so why don’t we cut those ones and always we are concentrating on a particularly tax policy?

"There is a level limit in which this economy can survive on taxes. Let me put this on record. We in the minority have worked with the government approve all tax policies in the budget other than the E-levy.

"We have said the only one we have problems with is the E-levy. But any other tax policy or government policy, we have worked with them to approve it.

"So they should not use the E-levy to blackmail us. I see this as a state blackmail and that should stop. If there’s a problem, come out an tell us so that we can all help you to fix it,” he said.

Background

The government in its 2022 budget statement announced a new tax measure christened Electronic Transaction Levy (E-levy).

The tax if approved will slap a 1.75% charge on all electronic transactions including Mobile Money (MoMo).

Opinions of Members of Parliament and the public at large have since the announcement of the new tax been sharply divided.

Whiles the majority NPP MPs support it as a catalyst for the country’s development, the all NDC minority side believe it will impose further hardship on Ghanaians.

The government is currently holding townhall meetings to court support for the levy.