April 8, 2022

What Dr Bawumia Said About E-levy During Economic Address

Many had been looking forward to the view of vice President Dr Mahamudu Bawumia in regards to the introduction of the Electronic Transfers Levy (E-levy), a 1.5% levy on some electronic transactions.

The veep, in an interview some time ago registered displeasure at taxing Mobile Money Transaction.

Since the announcement of the levy in November last year, Dr Bawumia remained silent about the tax policy which has now been passed by parliament and has gotten the assent of the President awaiting implementation next month.

Dr Mahamudu Bawumia in his address on the economy after a long while, failed to elaborate on the popular recently passed and assented Electronic Transfers Levy (E-levy).

Giving an address on the economy at NPP TESCON Training and Orientation Conference on April 7, Dr Bawumia mentioned the E-levy once while outlining measures the government has put in place to improve domestic revenue mobilisation and improve efficiency.

He avoided elaboration on the e-levy despite articulating on the successes of the Mobile Money Interoperability (MMI) system.

“We have practically solved the problem of financial exclusion in Ghana”, he said.

“At the end of 2016, total cumulative value of mobile money transactions was GHC 78.5 billion. Following MMI, the total cumulative value of mobile money transactions has increased to GHC 978.3 billion in 2021 (a twelve-fold increase!).”

“The digital payments infrastructure is boosting e-commerce in Ghana. Businesses are booming over Instagram, Facebook, Twitter, etc. Many people who cannot afford to rent or build shops are able to do business on the internet at little cost with deliveries helped by digital address and payments using mobile money interoperability”.

He also celebrated the fact that the system has ensured financial inclusion.

Many, however, have argued that the feat achieved in Mobile Money Operability will be interrupted by the yet-to-be implemented E-levy.

Already, reports indicate that panic withdrawal has hit the sector following the passage of the bill by Parliament and the subsequent ascent to it by President Akufo-Addo.

Source: opemsuo.com/Hajara Fuseini

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