General News of Monday, 9 October 2023
Source: www.ghanaweb.live
2023-10-09Government to redesign E-Levy - Report
E-Levy was introduced in May 2022 as a 1.5% charge on electronic and mobile money transactions
The government has revealed plans for a substantial overhaul of the Electronic Transfer Levy as part of its Medium Term Revenue Strategy, Myjoyonline.com reports.
The Electronic Transfer Levy, often criticized for its impact on mobile money transactions, was introduced in May 2022 as a 1.5% charge on electronic and mobile money transactions over ¢100 per day.
Designed to boost government revenue and extract
Read full article.more significant tax contributions from Ghana's informal sector, this levy faced public backlash.
In January 2023, the government responded to public concerns by reducing the tax rate from 1.5% to 1%. However, discussions continue about the potential removal of the exemption threshold for transactions below ¢100 per day, a feature currently in place but eroded by inflation.
The impact of the Electronic Transfer Levy on Ghana's public finances, its effects on the mobile money industry, and its implications for the country's poor have sparked intense and polarizing debates. However, much of this discussion has lacked empirical evidence.
This comprehensive redesign of the Electronic Transfer Levy signals a forward-thinking approach to taxation in the digital age and aligns with the government's broader strategy to modernize revenue collection.
Furthermore, the Medium Term Revenue Strategy outlines various other reforms:
Broadening the withholding tax regime to cover various tax types to enhance taxpayer identification, facilitate efficient tax collection, and simplify filing processes, especially for incomes within the informal sector.
Measures to streamline tax returns and scrutinize the modified taxation system, aiming to reduce tax avoidance and encourage voluntary compliance.
A review of outdated tax categories such as stamp duty, income tax stamp, and vehicle income tax, with a focus on aligning them with current market dynamics.
Enhancing the taxation of rental income to ensure fairer contributions from this sector.
Implementation of taxation on Gross Gaming Revenue (GGR) for industry players and the introduction of withholding tax on winnings, marking a significant step towards a more comprehensive and equitable tax structure.
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