Business, Features

E-Levy Tax kick starts Sunday May 1st

By Gifty Adunyah

Beginning Sunday May 1, 2022 all electronic money transactions above the GHC100 threshold will attract a 1.5 % charge. This comes following the approval of the E-Levy by Parliament and subsequent assent into law by President Akufo Addo. Government has already indicated its readiness for the collection of the levy with the Ghana Revenue Authority being the implementing Agency. GBC News looks back at some of the landmarks that characterized the passage of the E-Levy following the announcement by the Finance Minister in the 2022 Budget.

“The purpose of the E-Levy Bill is to broaden the tax base of the country to enhance revenue mobilization. The Levy is a key mechanism that the government of Ghana is using to ensure that the public contribute their fair share towards the development of the country’’.

Finance Minister Ken Ofori Atta announced the E-Levy when he presented the 2022 Budget Statement to Parliament. Since then, public uproar greeted the new tax, especially with the deduction pegged then at 1.75%.

Many people were of the view that the implementation would worsen the plight of the ordinary Ghanaian. Even when the percentage was reduced to 1.5 many were still against its passage.

” I think this E-levy is a scam, there are so many other projects the government should be thinking of.” ……..” I don’t see the reason why they should tax people just for sending money.”……..”To be frank there is too much hardship in Ghana now. I don’t support E-Levy.”

The Minority had been against the E-Levy from day one, when it was announced in Parliament. They have always described the tax as regressive, calling for it to be abolished.

When the E-Levy was laid eventually, the Minority walked out of Parliament after a heated debate leaving a one-sided House to pass the Bill.

The Majority side who passed the Bill eventually said they believe the collection of the levy would help to tackle the economic challenges and propel the developmental agenda.

Heated arguments and near fisticuffs greeted the debate before it was finally passed. The President later assented to the Bill passing it into law.When it was announced that the Ghana Revenue Authority (GRA) is the implementing agency, preparations have since been put in place to get the Telcos, Banks and other agencies hooked onto the system for the implementation to take effect.

While preparations were ongoing to implement the new tax, a lawsuit was slapped on the implementation, by the Minority in Parliament.

The FixTheCountry Movement has also put on notice that the GRA should halt implementation of the E-Levy.

Four days to the implementation, Ningo-Prampram MP Sam George stated that the Levy is being rushed as it cannot be implemented because the Application Programming Interface (API) and the security architecture have not been made available to the telecommunications companies (Telcos).

Over time communication for implementing the Levy was described as poor as many are yet to come to terms with how it will be implemented. Stakeholders such as the Momo Agents Association are one of those stakeholders who are still grappling with the format the implementation will take.

But GRA, the officially mandated collectors of the E-Levy say, all is set for a smooth take off of the Momo Tax.