Parliament has approved an amendment to the Electronic Transaction Levy (E-levy) from 1.5% to 1% on Wednesday, December 21, 2022.
Subsequently, the government sought to make the levy applicable to any amount transferred electronically.
The Minority in Parliament has continuously declared their stance to object to the removal of the GH₵100 threshold.
However, the bill submitted to the House on Wednesday, December 21, for approval excluded the section that sought to remove the GH₵100 threshold.
During the presentation of the 2023 Budget, the government announced a reduction of the E-levy rate from 1.5% to 1% and wanted to remove the daily non-taxable threshold of GH₵100.
Ranking Member of the Finance Committee, Dr Cassiel Ato Forson, while seconding the motion for the amendment bill to be approved, commended the government for denouncing its earlier intention to remove the threshold.
“We in the Minority had indicated strongly that we do not believe that the GH₵100 threshold must be removed because of several reasons.
“They have listened, and in presenting the E-levy bill clearly, they have decided to remove what they had intended to exclude. Mr Speaker, it is important for us to commend them for, at a minimum, they have listened,” he said on the Floor of Parliament.
It would be recalled that the government earlier this year announced the implementation of the E-levy at a rate of 1.5% for all electronic transactions exceeding GH₵100.
The 1.5% rate was a downward revision from the initially proposed 1.75%.
Despite the many agitations and rejections of the levy, the government said it was a significant revenue generation tax needed to shore up revenue for the economy.
Several months after the levy was implemented, the government said it could not generate the expected revenue.