Business & Finance

Minority: Our Position On E-levy Unchanged

The Minority in Parliament has said it holds its position when it comes to the Electronic Transfers Levy (E-Levy).

The Minority is proposing a one per cent rate with a threshold of ¢500.

Although the government in its 2023 Budget Statement and Economic Policy said the rate will be reviewed from 1.5% to 1 while the ¢100 thresholds will be scrapped, the minority says it maintains its stance.

“Our position on the E-levy remains unchanged …We tabled at the negotiation a possible 1% rate with a threshold of ¢500 to protect vulnerable people. They simply rejected it and walked out on us and must accept responsibility for that.”

The Minority believes the E-levy is a disincentive to Ghana’s quest to establish a cashless economy.

“The same Ghanaians are paying Communication Service tax. If they adjust the threshold upwards, they can engage us in a productive and constructive consultation”, Minority Leader Haruna Iddrisu stated.

Electronic Transfer Levy regulated by the Electronic Transfer Levy Act, 2022 (Act 1075) was introduced in the 2022 Budget at a rate of 1.75% but was later reviewed to 1.5%.

The levy which came into force on May 1, 2022, was marked to be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure, among others.

The 1.5% levy currently applies to mobile money transfers done between accounts on the same electronic money issuer; mobile money transfers from an account on one electronic money issuer to a recipient on another electronic money issuer; transfers from bank accounts to mobile money accounts; transfers from mobile money accounts to bank accounts; and Bank transfers on an instant pay digital platform or application originating from a bank account belonging to an individual subject to a daily threshold to be determined by the Minister of Finance.

Reading the budget in November, Ofori Atta said the revision of the levy will also focus on the inclusion of the various exclusions.

Currently, the levy does not apply to Specified Merchant Payments, Cash-Outs/cash withdrawals and Cash-Ins/cash deposits, the bank or at a mobile money agent/vendor point.

The levy was estimated to generate a revenue of GHc6.9 billion but a month after its implementation, a leading member of the ruling party, Gabby Otchere Darko, said only 10% of estimated revenues were being raked.



Source: Fuseini

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