General News of Friday, 19 November 2021
Source: www.ghanaweb.live
2021-11-19Replacing road tolls with E-levy 'smart thinking' - Vim Lady recalls talk time tax
Afia Pokuaa, popularly referred to as Vim Lady
Vim Lady has waded into the issue of taxes as contained in the 2022 budget
She alleges that the scrapped road toll have been replaced by the E-levy
She relates the E-levy to the late Baah Wiredu's talk time tax
Programs Manager at the Despite Media Group, Afia Pokuaa alias Vim Lady, has waded into
Read full articlethe recent taxes removed and imposed by the Nana Addo Dankwa Akufo-Addo government.
Finance Minister Ken Ofori-Atta in his 2022 budget reading announced the removal of road tolls upon Parliamentary ratification and the imposition of a 1.75% levy on electronic transactions - i.e. the E-levy.
According to Vim Lady, there was a correlation between the removed and imposed tax, even though the Minister did not suggest so, which point has also been disputed by some Majority MPs.
Her post on Facebook read: "I think the idea to remove road tolls and replace them with E-LEVY is one of the SMARTEST thinking since Baah Wiredu introduced Talk Time Tax.
"But whether the money will be used for development or not, I have my doubts," her post added.
Road tolls scrapped
“Government has abolished all tolls on public roads and bridges. This takes effect immediately the Budget is approved,” Ken Ofori-Atta hinted while reading the 2022 budget statement in Parliament.
He added, “Over the years, the tolling points have become unhealthy market centres, led to heavy traffic on our roads, lengthened travel time from one place to another, and impacted negatively on productivity.
"The congestion generated at the tolling points, besides creating these inconveniences, also leads to pollution in and around those vicinities.”
The Finance Minister stressed that, “a portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others.”
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.
