NPP government wants to use E-levy to go for loans - NDC MP

The Member of Parliament for Ejura Sekyedumase in the Ashanti Region, Mr Bawa Braimah Mohammed says the opposition National Democratic Congress (NDC) will cancel the E-levy when it wins power provided the current government does not use the levy to secure more loans.

According to him, the NPP-Government has failed to use the tax it has collected to develop the country.

The Finance Minister, Ken Ofori-Atta, who announced the introduction of the E-Levy said it will be used to undertake developmental projects, adding that the tax will widen the tax net and rope in the informal sector.

He added that electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except for inward remittances, which will be borne by the recipient.

Since the E-Levy was introduced, the Minority in Parliament has rejected it.

Recently, the Finance Minister, Mr Ken Ofori Atta stated that the government had engaged the Telcos on the controversial E-Levy and the Telcos agreed to cut down their percentage on transactions by 0.25%.

In the latest development, the government proposed that the E-Levy will be reduced from 1.75% to 1.5% but the Minority again rejected this proposal, saying they do not want it to be passed at all.

Speaking on Atinka TV‘s morning show, Ghana Nie, Mr Bawa Braimah Mohammed said the minority does not support the E-levy because it is a reversible tax.

“What is scary is that they are taxing the E-levy so that they will get the chance to use it as collateral to collect loans, ” he said.

Meanwhile, he said the Majority is trying to reduce the minority numbers so that they can pass the E-levy, adding that, "We are there. Whether they pass or not, what we are saying is it is not something that will help.”

“If they pass it and we come to power and they have not used it to go for loans, we will cancel it. Their main aim is to pass the E-levy and collateralize it and use it for loans,” he added.