“E-levy is being presented on the lowest price for any tax in Ghana, relatively at 1.75%. Lower than 2%. In different international locations, virtual taxes are being presented on the price of as much as 10%, and they are paying. That is the United Kingdom.”
The Nana Addo Dankwa Akufo-Addo executive intends to get a brand new invoice referred to as the Digital Transactions Levy (E-Levy), which is a 1.75% fee on all digital transactions within the nation together with Cell Cash Transactions, when handed via the rustic’s parliament.
This was once contained within the 2022 Finances Commentary and Financial Coverage that was once offered to parliament via the Minister of Finance, Ken Ofori-Atta, in overdue 2021, however that invoice has been met with stiff resistance and an unrelenting force via the Minority in Parliament to make sure that it’s by no means handed.
No longer most effective has this been resisted via the Nationwide Democratic Congress (NDC) Contributors of Parliament, however many from throughout just about all sectors of the financial system have additionally registered their dismay and abhorrence for the levy.
Many consider the E-Levy will most effective compound the woes of the extraordinary Ghanaian, however the executive is assured it’s going to reasonably make the rustic higher since this would simply be the one saviour for the rustic in going again to the IMF.
Whilst the Home is again in consultation, the E-Levy is but to be offered for discussions or debate following its first rejection within the ultimate sitting of the Area in 2021, however the executive isn’t preventing anytime quickly.
In a transfer to expand consultations and discussions surrounding the levy, the Ministry of Data held a Townhall Assembly at the E-Levy at Koforidua, within the Japanese Area, on Thursday, January 27, 2022.
The Minister of Communications and Digitalization, Ursula Owusu-Ekuful, who was once some of the audio system on the assembly, fastened a defence for the present price of one.75% on all digital transactions as contained within the E-levy Invoice.
In line with her, in comparison to a equivalent virtual tax these days being applied in the UK (UK), Ghana’s price is much decrease, for the reason that the United Kingdom’s price is 10%.
Ursula enumerated a lot of taxes that had in the past been presented via governments, stressing their significance in building efforts.
“In 2008, the federal government of President Kufuor presented the Communications Provider Tax in August of that 12 months, and it was every other supply of source of revenue for nationwide building. “That tax was once presented at a price of 6%, which was once later higher to 9%.
“E-levy is being presented on the lowest price for any tax in Ghana, relatively at 1.75%. Lower than 2%. In different international locations, virtual taxes are being presented on the price of as much as 10%, and they are paying. That is the United Kingdom,” she claimed.
With out declaring the precise tax from the United Kingdom that she when put next with Ghana’s 1.75% E-Levy, the Minister of Communications and Digitalization, Ursula Owusu-Ekuful, was once transparent when she mentioned, “In different international locations, virtual taxes are being presented on the price of as much as 10%, and they are paying. That is the United Kingdom.”
The GhanaWeb FactCheck table did a snappy take a look at on-line to establish whether or not or no longer one of these equivalent tax exists in the United Kingdom.
In line with gov.united kingdom, from April 1 2020, the federal government presented a brand new 2% tax at the revenues of search engines like google and yahoo, social media products and services and on-line marketplaces which derive worth from UK customers.
Through this tax, companies could be at risk of the Virtual Services and products Tax when their international revenues from those virtual actions are greater than £500 million and greater than £25 million of those revenues are derived from UK customers.
Moreover, the DST will make sure that there was once an allowance of £25 million, because of this an organization’s first £25 million of revenues derived from UK customers might not be topic to Virtual Services and products Tax.
It has subsequently been established that the mentioned declare via Ursula Owusu-Ekuful evaluating the proposed 1.75% E-Levy price to the United Kingdom’s Virtual Provider Tax, which she claimed is 10%, is False.
View her Timepath underneath;