Minority rejects proposal to reduce E-levy to 1.5%

The Minority in parliament has rejected a proposal from the government to reduce the rate of the proposed electronic transactions levy from 1.75% to 1.5 percent.

The reduction is informed by the concession from the Telcos to reduce their 1% charge on transactions by 0.25%.

The minority has said in a meeting that was called by Finance Minister, Ken Ofori-Atta that it won’t agree to the proposal.

The meeting is currently underway at DF Annan Auditorium of the Job 600 block in Parliament to get the Minority to agree to the proposal and whip its members to vote for the approval of the tax.

Despite the government’s resolve to pass the law, the Minority has vowed to resist it vehemently owing to the fact that Ghanaians have kicked against it.

The Mobile money Association of Ghana on Thursday petitioned the Minority Caucus in Parliament to resist the E-levy while the government was holding a town hall meeting in Koforidua to persuade Ghanaians to accept it.

Finance Minister Ken Ofori-Atta stated its passage was necessary for the development of the country because it will increase the country’s tax-to-GDP from 13% to a targeted 16% or more.

But the Mobile money Association of Ghana says the analysis they did on the E-levy following its introduction in the 2022 budget shows its implementation will pose a challenge not only to Ghanaians and agents but also have some effects on the economy, adding it will undermine the country’s cashless system, job losses and affect the government’s digitisation drive.

“Yes mobile money has become the major driver of both formal and informal sector, everybody is now leveraging on whatever economic activity to transact using the mobile money platform. So after our assessment, we have realised that there are about 12 challenges that would arise, should the government continue to pursue the e-levy in its current state or form,” he said.

Mr Otumfour stated that given the challenges they have highlighted in the petition, the E-levy bill in its current form “should be scrapped”.

He added that “we are agents and we play major roles within the industry so when we realise that our profit margins are going to be affected, our lives are also under threat then we will be left with no alternative than to consider pulling back our investment.”