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Govt sets aside GHC241 million as payment for e-levy services – Ablakwa discloses

Samuel Okudzeto Ablakwa, has hinted that the Minority Caucus will be demanding full disclosure of the electronic transaction levy, as the government of Ghana has allocated GHC241,933,000 as its payment.

According to him, it is unconscionable for the government to tax the poor to make the rich richer.

Ablakwa in a post on his official Twitter timeline shared Appendix 4B on page 242 of the 2022 budget, where it reveals GHC241,933,000 has been allocated to e-levy.

He believes when the Minority Caucus gets the e-levy scrapped, it will affect some “shadowy” business interest.

The North Tongu MP in a Tweet said, “It does appear our agitations against the E-Levy is going to really affect some shadowy business interests if we succeed in having it scrapped or substantially reduced.

“Appendix 4B at page 242 of the 2022 budget reveals that a colossal GHC241,933,000 has already been set aside to pay for so-called e-Transaction Levy Services.

“We shall be demanding full disclosure in Parliament on this apparent sweetheart deal. Taxing the poor to make the rich richer. This is most unconscionable!” Samuel Okudzeto Ablakwa concluded.

1.75% levy on electronic transactions

Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.

Fees and charges of government services have also been increased by 15%.

The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.

“As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.

“To safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day, which is approximately ¢3000 per month, will be exempt from this levy,” Ofori-Atta revealed.

 

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