E-levy best for building an entrepreneurial nation – Ofori-Atta defends

Ken Ofori-Atta has been defending the e-levy

He said it is best to build an entrepreneurial Ghana

He spoke to Joy News

Ken Ofori-Atta, Finance Minister, has defended the 1.75% electronic levy (e-levy) which was in the 2022 budget statement presented before Parliament.

Speaking to Joy News during the ongoing Volta Fair at the Ho Sports

Read full articleStadium, the minister stated that, the e-levy will be the best way Ghana can build an entrepreneurial nation.

He explained, ‘we know that it takes the invisible hand of the state to pick people up. And so this historic 10 billion intervention that we have had and finding ways for burden-sharing."

‘So we recognise the problems of youth unemployment, the problem of roads, the problem of debt and we as a nation have decided to burden share,” Ofori-Atta said.

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.