By Franklin ASARE-DONKOH
The Finance Minister, Mr. Ken Ofori-Atta has moved the motion for the debate on the controversial Electronic Transfer levy (E-levy) to commence in Parliament today Tuesday, 29, March 29, 2022.
Although the Bill was not captured in the business statement of the House for this week, it was enlisted for the second reading and consideration.
However, the Minority in Parliament has raised objections to plans by the Majority to commence debate on the controversial E-levy today.
According to the Minority, the move was not captured in the business of the week; hence they are surprised at its enlistment in the order paper.
“When the business statement was presented last week, (E-levy) was not part of the business approved for the house. We have warned time and again and cautioned that we do want to be taken by surprise by a major economic policy of the government. Parliament cannot be that when a side is convenient with its number, then the business can go on. It cannot be. We will not accept that culture. So when they (The majority) did not have the numbers, they weren’t ready. Now, that they have the numbers, then you say we should do business.”
The Minority Leader, and MP for Tamale South, Mr. Haruna Iddrisu reiterates the Minority’s stance on the E-levy.
“The object of this bill is to broaden the tax base of this country by imposing the levy on electronic transfer and enhance the government’s drive for revenue mobilization. The levy which is expected to raise GHS 6.9 million in 2022 is a key mechanism that the government will use to ensure Ghanaians contribute their fair share towards the development of the country. In the spirit of cooperation, the government has decided to reduce the rate of the levy from 1.75 to 1.5 percent of the transfer. At the consideration stage, I will bring the necessary amendments to reflect the changes”, the Finance Minister said when he moved the motion.
The controversial E-levy was introduced by the government in the 2022 Budget on basic transactions related to digital payments and electronic platform transactions.
The rate will apply to electronic transactions that are more than GHS 100 on a daily basis. This is different from the 1% telcos charge on transactions.
However, the levy has sparked controversy because of its impact on mobile money transactions and citizens.
The Minority in Parliament has been resisting the levy ahead of the debate on the Bill in Parliament.
