<\/p>\n
The government is set to reduce the rate of the controversial Electronic Transfer <\/span>Levy<\/span> to 1 percent from 1.5 percent.<\/span><\/p>\n In the 2023 budget statement, the Finance Minister, Ken Ofori-Atta, said this review was part of a \u201cseven-point agenda aimed at restoring macroeconomic stability and accelerating our economic transformation.\u201d<\/p>\n The review of the act is to \u201caggressively mobilise domestic revenue.\u201d<\/p>\n As part of the review of the e-levy act, the minister also said the daily threshold would be reviewed.<\/p>\n The minister admitted that the levy which was introduced in the 2022 budget \u201chas not yielded the resources as expected.\u201d<\/p>\n This review is the second for the levy, after initially being pegged at 1.75 percent before the government reduced it in a compromise amid protests against it.<\/p>\n Mr. Ofori-Atta also noted that the government received several proposals for review of the E-Levy \u201cand is working closely with all stakeholders to evaluate the impact of the Levy.\u201d<\/p>\n He said these could include the revision of the various exclusions.<\/p>\n \u201cAs a first step, however, the headline rate will be reduced to one percent of the transaction value alongside the removal of the daily threshold,\u201d Mr. Ofori-Atta stated.<\/p>\n The government reduced expectations for revenue collection from the levy after an initial projection of GHS 7 billion.<\/p>\n In July 2022, projections were reduced by about ten-fold to GHS 611 million.<\/p>\n The levy faced stiff opposition from the Minority in Parliament and was generally unpopular with Ghanaians.<\/p>\n An Afro-Barometer survey showed that three-fourths of Ghanaians disapproved of the e-levy, including 67 percent who \u201cstrongly disapproved\u201d of it.<\/p>\n Only two in 10 Ghanaians endorsed the new tax.<\/p>\n The debate over the regulation dragged on for four months, delaying its passage.<\/p>\n The levy was eventually implemented in May 2022.<\/p>\n