'We have made very good progress on E-Levy consultations' – Abena Osei-Asare

The government says it has gone far with its consultations with the Minority Caucus on the controversial 1.75 percent electronic transaction levy.

Deputy Finance Minister, Abena Osei-Asare, told journalists on Tuesday, 14 December 2021 that: “I believe that we will bring the bill in, and, hopefully; all things being equal, it will be laid in parliament and all of us will see everything stated clearly in the electronic transaction levy.”

She noted: “You can never finish consultations, so, I cannot say consultations are over but we have made very good progress in the consultation process and I believe that it will reflect in the bill that we will be presented to Parliament.”

A few days ago, the Majority Caucus in parliament said it was ready to work together with the Minority Caucus to agree on the proposed e-levy in the 2022 budget.

This followed the insistence of the Minority Caucus that it was still against the levy in all its entirety.

“Mr. Speaker, we believe that the e-levy is punitive; it will undermine our quest to grow a digital economy, it’s seeking to tax transactions – Mr. Speaker, you just can imagine remittance was sent to your mother; GHS1,000; he sends GHS800 to a sister; GHS400 to a brother, GHS400 to another brother, all those transactions will be taxed”, Minority Leader Haruna Iddrisu said on the floor of parliament on Tuesday, 7 December 2021 after Finance Minister Ken Ofori-Atta submitted his amendments to the budget to the house for adoption.

The Tamale South MP continued: “Mr. Speaker, we are guided by the public good and we think that monies recoverable from the auditor-general’s report can, as well, compensate for the imposition of an e-levy; so, Mr. Speaker, we, on this site, are unable to support the government in its quest to impose an e-levy at 1.75% on MoMo and associated transactions including remittances and bank transactions”.

He added: “Therefore, we stand opposed, and at every level that e-levy is introduced, we will stand united to oppose it because it will inflict hardships on the core poor of the Ghanaian people and we stand opposed to it as I indicated earlier that you don’t tax capital; you tax income and revenue”.

“So, Mr. Speaker, on the vexed issue of e-levy, we are unable to support the government and we’ll continue to oppose it and oppose it in its entirety, in its character now at the threshold of GHS100 at 1.75%. We will stand with the Ghanaian people just as the people of Cameroon have done in raising our fundamental objections to it”, he noted.

However, Deputy Majority Leader Alexander Kwamina Afenyo-Markin, said: “Mr. Speaker, on the e-levy, yes, we respect their views but the minister [of finance] has indicated that there are two important things that they seek to do”.

“I believe that in the final analysis, it is how this is applied that will matter and he has even ensured that he’s going to continue with the consultations and engagements”.

Mr. Afenyo-Markin said: “We are of the view that the whole essence of democracy is not to shut the door but to open it up for continuous engagement”.

“Mr. Speaker, having said these, I would want to assure our colleagues on the other side that we may be emotional at times, we may disagree and be at each other’s throat at times but in the final analysis, we are ready to work together for the sake of Mother Ghana”.