-Advertisement-

-Advertisement-

‘NDC will not abolish E-Levy, its a fallacy’ – Kabila

Source The Ghana Report.com

Former CPP General Secretary, James Kwabena Bonfeh, has said a future National Democratic  Congress (NDC) government is not likely to cancel the Electronic Transfer Levy (E-Levy) as promised by former President John Mahama.

He, therefore, described it as a fallacy and a means to only canvass votes.

In an address to some party members on Monday, 2 May 2022, Mr Mahama promised that a future National Democratic Congress (NDC) will cancel the E-levy.

“We in the NDC do not oppose taxation as a principle. We will not be pretentious and couch fanciful slogans to condemn the principle of taxation like the NPP did in the past. We are, however, implacably opposed to distortion and burdensome taxes like the e-levy that only force Ghanaians to endure more suffering.

“A new National Democratic Congress Government, God willing and with the votes of the sovereign people of Ghana – in 2025 – will repeal the E-Levy Act,” he assured.

However, Mr Bonfeh insists that the NDC might not even win the elections.

“They may never get the chance to do that…and if they got the chance, they surely will not abolish it. Mark my words,” he said on TV3 on Wednesday, May 4.

Meanwhile, the Ghana Revenue Authority (GRA) on Sunday, 1 May 2022, began implementation of the controversial Electronic Transaction Levy – with many Ghanaians still expressing their displeasure and disapproval.

With the delayed start to implementation due to significant opposition to the levy in parliament by the minority, reduction in the rate from 1.75 percent to 1.5 percent and the negative sentiments that heralded the levy’s proposal last year, the target of GH¢6.9billion expected in revenues has now been revised to GH¢4.5billion.

The Minority in Parliament had earlier on April 19,  filed an application at the Supreme Court to place an injunction on the start of the E-levy deductions but a motion in response to the application by the Attorney General has described the main application as incompetent and waste of time.

At a hearing of the application on Wednesday, May 4, a seven-member Supreme Court panel dismissed it.

What is the E-levy?

The E-levy is a tax applied on transactions made on electronic or digital platforms. The Minister of Finance announced in Parliament the intention to implement the bill during the presentation of the 2022 Budget.

The tax is one of the measures government plans to use to increase the country’s tax to GDP ratio from 12 5% in 2021 to 20% by 2024.

The government said it would use the revenue for entrepreneurship, youth employment, digital infrastructure and cyber security, and provision of road infrastructure.

The E Levy is charged at the rate of 1 50% on the following transactions:

•Mobile Money transfers done between accounts on the same electronic money issuer
•Mobile Money transfers from an account on one electronic money issuer to a recipient on another electronic money issuer
•Transfers from bank accounts to mobile money accounts
•Transfers from mobile money accounts to bank accounts
•Bank transfers on an instant pay digital platform or application originating from a bank account belonging to an individual subject to a threshold to be determined by the Minister of Finance.

However, not all transfers will be affected by the E Levy.

The Levy does not apply to the following types of transfers:

• A cumulative transfer of One Hundred Ghana Cedis a day made by the same person
•A transfer between accounts owned by the same person
•A transfer for payment of taxes, fees and charges on the Ghana.Gov System or any other Government of Ghana designated payment system
•Specified merchant payments
•Transfers between principal, agent and master agent accounts and
•Electronic clearing of cheques

 

The Charging Entities are:

  • Electronic Money Issuers
  • Payment Service Providers
  • Banks
  • Specialised Deposit-Taking Institutions
  • Other Financial Institutions prescribed by Regulations made under the Act.

 

The levy had divided Parliament, with the Majority pushing for approval while the Minority kicked against it.

There was a split vote of 12 for each side at parliament’s finance committee until the chairman cast the decisive vote favouring the proposal.

Parliament degenerated into fisticuffs at a meeting to approve the levy prompting an adjournment to 18 January 2022.

The Chamber turned chaotic as MPs pushed, shoved and punched each other during the heated exchanges that many observers have since condemned.

This was after the Speaker of Parliament, Alban Bagbin, had left and delegated the First Deputy Speaker, Joe Osei Owusu, to take over proceedings.

The Minority had said it would do all it could to ensure that the bill did not see the light of day, insisting it was not in the best interest of Ghanaians.

 

 

You might also like
Leave A Reply

Your email address will not be published.