If effecting Mahama’s bank charges tax was incompetence, how should we call you now? - Adongo to govt

Parliament starts debate on the 2022 budget from Tuesday

Ken Ofori-Atta announced a new e-levy

The 2022 budget is code-named the Agyenkwa Budget

The Deputy Ranking Member of the Finance Committee of Parliament, Isaac Adongo, has accused the Nana Addo Dankwa Akufo-Addo administration of engaging in double standards with the introduction

Read full articleof the Electronic Transaction Levy (E-Levy) in the 2022 budget.

During his reading of the 2022 Budget Statement and Economic Policy of government earlier this week, the Minister of Finance, Ken Ofori-Atta, announced the introduction of the e-levy.

"After considerable deliberations, the Government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the 'Electronic Levy or E-Levy.'

"Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient," he said.

But reacting to the introduction of the e-levy, which will affect Momo transactions as well, the Bolgatanga Central MP said that leading members of the governing New Patriotic Party (NPP), including Vice President Dr. Mahamudu Bawumia rejected imposition of VAT on banks in the country while in opposition.

The party, Adongo argued, described the 17.5% VAT on fees, charges and commissions banks charged on transactions introduced by the Mahama administration as a nuisance and born out of incompetence.

"The Mahama administration was compelled to suspend the policy in 2014 following push back from stakeholders and the opposition," he said.

He wondered how Ghanaians should describe the NPP administration today considering this new levy, added to the financial sector recovery levy introduced last year and which affects bank services.

He made this known in a social media post, where he called out what he termed hypocrisy of the Akufo-Addo-Bawumia administration.

“Atotobotom (pickpocket) budget. When we ( The Mahama administration) imposed bank charges you said it was incompetence. With your two new tax handles, you now tax bank charges and customers’ transactions as well. How should we call you?” he queried.

Parliament is expected to begin debate on the Agyenkwa Budget from Tuesday, November 23, 2021.