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Wednesday, January 26, 2022

‘What is your true position on the E-levy?’

Sulemana Braimah, Executive Director of MFWA Sulemana Braimah, Executive Director of MFWA

Sulemana Braimah, Executive Director of the Media Foundation For West Africa, MFWA, has demanded the “true position” of the opposition National Democratic Congress, NDC, caucus in Parliament on the electronic levy (E-levy).

The 1.75% E-levy has become one of the most controversial taxes contained in the 2022 Budget.

The levy has been the main reason the NDC MPs rejected the budget during a November 26, 2021 vote. That vote was reversed by NPP MPs on November 30.

“Dear NDC in Parliament, what is your position on the E-levy? Is it a NO to the levy or you are negotiating for a reduction of the 1.75 rate? What is your true position?” Sulemana posted on Twitter.

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The NDC position has been a “no, no” till Minority Leader Haruna Iddrisu recently stated that he had changed his position from a “no, no” to a reduction of 1%.

Amid the back and forth over the budget approval, Parliament has instituted a bipartisan committee to resolve differences over the budget.

What Ofori-Atta said about 1.75% levy on electronic transactions

Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.

Fees and charges of government services have also been increased by 15%.

The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.

“As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.

“To safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day, which is approximately ¢3000 per month, will be exempt from this levy,” Ofori-Atta revealed.

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