E-Levy: Parliament reconvenes despite uncertainty over passage of Bill

Parliament at an impasse over E-Levy

Minority reject 1.5% reduction in levy

Ghanaians oppose E-Levy Bill

Ghana’s 8th Parliament is expected to reconvene on Tuesday, February 1 with some uncertainty around the consideration and passage of the

Read full articleElectronic Transaction Levy Bill.

So far, government has made it known its plan to present an amended rate of the E-levy from an initial 1.75 percent to 1.5 percent.

Although the Speaker of Parliament, Alban Bagbin will not be present to preside over the proceedings, the fate of the E-Levy Bill remains uncertain.

Addressing journalists in Parliament last week, Deputy Minority Leader, James Klutse Avedzi has urged his colleagues on the majority side to at least await the return of the speaker before the Bill can be re-laid in the House.

This move, Avedzi explained will avert any further confusion that occurred in December last year.

“If the Speaker traveled this weekend, then he will not be available. Our advise to the majority side is that we should wait until the speaker comes back. When the speaker presides then we will vote on the matter. Once that is done, the end decision will be a decision of the house,” he told journalists outside parliament last week.

Prior to this, leaders of the Minority caucus are reported to have rejected government's decision to reduce the rate of the E-Levy from 1.75 percent to 1.5 percent.

The move, by government, however comes following a concession made by telecommunications companies to reduce their 1 percent charge by 0.25 percent.

The E-Levy since its announcement by the finance minister [Ken Ofori-Atta] in November 2021 has received public backlash from Ghanaians and lawmakers in Parliament.

Background

On November 17, 2021, Finance Minister, Ken Ofori-Atta, announced the introduction of a 1.75% tax on all electronic transactions during the 2022 budget presentation before parliament.

According to him, the new tax measure forms part of efforts to widen the country’s tax net and increase revenue.

The E-Levy when passed, will cover mobile money payments, bank transfers, inward remittances and others.