E-levy is progressive – Ken Ofori Atta

Govt to setup call centers to receive feedback on e-levy

Ken Ofori-Atta says no agreement has been reached with minority MPs on e-levy

Parliament reconvenes to tomorrow

The Finance Minister, Ken Ofori-Atta, has labelled the electronic transaction levy otherwise known as e-levy as one

Read full articlewhich is “largely progressive”.

Speaking at a news conference in Accra today, the minister explained that the government had considered several factors to cushion Ghanaians before announcing the levy in the 2022 budget presentation.

“The proposed E-Levy is largely progressive. We have intentionally, set the GH¢100 threshold (covering about 40 percent of momo users), mindful of the need to exempt vulnerable groups, while continuing to encourage the development of our nascent digital economy. This, to a very large extent, will ensure that a significant number of Ghanaians, low-income earners in the informal sector, whose daily transactions fall below the GH¢100 threshold are totally exempt from the payment of the E-Levy. There are other issues that have been raised by the Minority Caucus and concerned citizens such as increasing fuel prices, poor infrastructure (estimated at about USD 522 billion over the next 10 years), insufficient job creation. The provision of the threshold demonstrates a caring government, the actions of a government that has, since 2017, implemented some of the most innovative social interventions that this nation has ever seen” he mentioned.

Ken Ofori-Atta also indicated that the introduction of the levy will help in expanding the tax net of the country to rope in revenue from the digital economy to reflect the new reality.

To this end, he stated that the government will work to ensure that no loopholes are left to evade the e-levy.

“To lessen the impact of the E-Levy on consumers and subscribers, especially the more vulnerable, we shall work with all the stakeholders including the TELCO’s to ensure that the all-inclusive cost is reduced by 0.25 percentage point. We shall also ensure that administration measures will be taken to avoid attempts at evading the E-Levy taxes,” he emphasized.

He further mentioned that plans are far advanced to set up call centers to receive evaluation on the e-levy once the implementation kicks in next year 2022.

“With all such new cutting edge and innovative initiatives we do expect to encounter some challenges during the implementation stage as we humbly request that you all bear with us as we roll out this new way of revenue collection. We will also set up call centers to receive any complaints and/or suggestions” he disclosed.

The e-levy once implemented in 2022 will see a 1.75% charge slapped on all transactions on digital platforms including mobile money.

The minority in parliament has since its announcement vehemently oppose it, describing as it as a “draconian tax government wants to impose on poor Ghanaians”.