E-Levy: Local economy to go cashless in next 5 years - Finance Minister

Minority warn E-Levy will be counterproductive to digitalization agenda

Majority caucus optimistic E-Levy will be approved

Government hold town hall meeting to court support for E-Levy

Finance Minister, Ken Ofori-Atta, has dismissed assertions that the introduction of the E-Levy will compel people to revert to carrying bulk cash.

Speaking at the

Read full article5th edition of the government’s townhall meeting on E-Levy in Ho, Ken Ofori-Atta said the government was planning to make the economy cashless in the next five years.

This, he said, will make it impossible for taxation on e-commence to be avoided.

“We talk about digitalizing our economy and the speculation is that the benefits of MoMo transfers are so minimal that people will start carrying sacks of money to go back to the lorry station to go and send somebody," he said.

“We know that is not true. Besides we can have a policy which I hope we will do so which will say that we are going to have a cashless economy maybe in 3 or in 5 years...What does that mean? Meaning the will be no paper for you to use because everything will be on your phone," he added

“It doesn’t mean you have moved away from digitalization. You are accelerating it because it is more efficient…I can find your grandma and send her money et cetera."

“Let’s not speculate about the future in a way that stops us from facing the realities of where we are going. Where we are going is bringing everybody into these waterholes so that everybody contributes and we move forward as one nation. and that what we should[sic]. You shouldn’t be the one frightening us from the future,” Ken Ofori-Atta explained.

Background

Members of Parliament have sharply been divided over the controversial E-levy since it was announced on November 17 in the government’s 2022 budget statement.

While the majority of NPP MPs are in support of it, the NDC minority side is opposed to it.

The bill, if passed in its current form, will slap a 1.75% charge on all electronic transactions including MoMo.

The government contends that the new tax measure to help to expand the tax net in order for everyone to contribute to the country’s development.