Business News of Tuesday, 18 January 2022
Source: www.ghanaweb.live
2022-01-18Government to review E-levy?
Frank Annoh-Dompreh, Majority Chief Whip in Parliament
Parliament is to resume on January 25
E-levy is to be passed when the House resume
Majority Chief Whip has hinted government will review the 1.75% tax
One of the major highlights of the one-year-old eighth
Read full articletarget='_blank' href='/GhanaHomePage/people/person.php?ID=3205'>Parliament of Ghana has been the Executive's relentless effort to ensure that Parliament passes the Electronic Transaction Levy (E-levy) before the House last went on recess.
This brought about some fisticuffs between the two sides of the lawmaking chamber - i.e. the Majority and Minority Caucuses - yet the E-levy was not passed but with Parliament about to resume for business on January 25, the government is certain that the E-levy will be laid before the House and subsequently have the vote of the Majority for it to be operationalised.
But will the Akufo-Addo led government review the 1.75% tax on all electronic transactions?
Frank Annoh-Dompreh, Majority Chief Whip and MP for Nsawam/Adoagyiri, has hinted that the government will be reviewing the E-levy rate of 1.75%.
He told an Accra-based Citi FM that, stakeholders have been extensively engaged and the E-levy would be tabled in a form acceptable to all.
“I have a feeling that there might be one or two amendments, especially concerns about utility and probably the rates. I am sure there will be some amendments to it. I am not concluding though, but from intelligence, I am picking, the kind of thinking the MPs are showing, I am very sure that there will be some change in form.”
Background
It would be recalled that on November 17, 2021, Finance Minister, Ken Ofori-Atta, announced the introduction of 1.75% tax on all electronic transactions during the 2022 budget presentation before parliament.
According to him, this new directive forms part of strategies to widen the country’s tax net.
He added that the 1.75% tax is also to enhance financial inclusion and protect the vulnerable in the country.
The E-levy since its announcement by the Finance Minister has received public backlash from some Ghanaians especially Members of Parliament from the Minority Caucus.
