Business News of Thursday, 31 March 2022
Source: www.ghanaweb.live
2022-03-31E-Levy will drive e-transaction consumers away – Prof Quartey to government
Prof. Peter Quartey
E-Levy has been passed by Parliament
The rate was reduced from 1.75% to 1.5%
Minority caucus staged a walkout
Prof. Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has hinted that the current rate of 1.5% on E-Levy will negatively impact e-transactions.
He has subsequently called for a further reduction of the
Read full articlerevised rate of 1.5% so that e-transaction consumers will continue to patronise and transact business electronically.
Prof. Quartey explained in an interview on Joy FM, Wednesday, March 30, “If you’re going to tax, you ought to be very careful with the rate at which you tax since there are other options and as for me, this is why we recommended that a rate below 1% is something that most consumers will cope with, but as the rate increases, be rest assured that people will find alternatives and you may not be able to realise the revenue earmarked.”
He noted that there are some benefits associated with the passage of the levy, stressing that “having passed the e-levy will give some sort of assurance that revenue gap will be plugged in one way or the other, perhaps not fully, but at least there’s some revenue that will be realised from this.”
About the E-Levy bill
The government of Ghana will charge a rate of 1.5% on electronic transactions that are more than GH¢100 on a daily basis.
Critics of the proposal have warned that this new levy will negatively impact the Fintech space, as well as hurt low-income people and those outside the formal banking sector.
The levy has been the source of tension in Parliament since it was introduced in the 2022 budget. The tensions culminated in a scuffle between lawmakers in Parliament in December 2021.
The government has, however, argued the levy would widen the tax net and that could raise an extra GH¢6.9 billion in 2022. There are also concerns that the government may securitise proceeds from the E-Levy to raise extra revenue.
