Finance Minister, Ken Ofori-Atta, says the government intends to ensure that no one evades the e-levy tax once it becomes operational, adding the government has in place measures to ensure that anybody who transacts electronic cash payment pays the levy.
According to experts, this controversial tax is an admission of the Akufo Addo administration of its failure to properly manage the economy, as it had saddled Ghana with such huge public debt (over 82% of GDP) that it is unable to raise funds internationally and must fleece an already overburdened Ghanaians with the extra tax.
Speaking at a press conference in Accra Monday, Ofori-Atta claims the levy is currently the best means by which to expand the coverage of the country’s tax net.
“On the matter of the E-levy, having regard to its serious fiscal implications, we will continue our consultations with the Minority Caucus in Parliament and other relevant stakeholders, with a view to achieving consensus and reverting to the House in the shortest possible time,” he told the press.
“We are determined to enhance domestic revenue mobilisation, the presence of our proposal on the E-Levy is to widen the tax net and generate the required revenue to support entrepreneurship, youth employment to build our infrastructure especially roads and reduce our debts.”
According to him, the e-levy represents the administration’s greatest opportunity to widen the tax base and meet the tax to GDP ratio of 20%.
The e-levy has racked up a lot of controversy with many Ghanaians saying that it is retrogressive and harsh. It proposes to tax every electronic cash transfer 1.75% levy, including on internal remittances and salaries transferred through bank accounts which already attract income tax
Meanwhile, the Minority in Parliament says its position on the controversial E-Levy in the 2022 budget has not changed.
It comes on the back of reports that the Minority leader Haruna Iddrisu says the minority caucus is willing to accommodate an adjustment of the levy from 1.75% to 1% of all electronic cash transactions.
“For the avoidance of doubt, the position of the NDC Caucus in Parliament right from the outset of the 2022 Budget debate has been that the 1.75% E-Levy government is seeking to impose is regressive, punitive and draconian, and that same,” a statement signed by minority chief whip, Muntaka Mubarak, said.
