The Dean of the University of Ghana’s Law Faculty, Professor Raymond Atuguba, has asked for the controversial Electronic Transaction Levy (E-levy) Bill to be passed.
Although averring to the tax policy Although he, explained that funds generated from the said levy will save the country from looming economic threats.
Speaking at a Public Lecture on Monday, Prof Atugubah declared that “Ghana is broke.”
According to him, the country’s current financial state is a threat to its democracy since studies have confirmed that an ailing economy is the originator of all successful coup d’états in the sub-region.
In view of this, he noted that the passage of the E-levy Bill is one of the concrete steps to prevent a coup and the economy’s collapse.
“To prevent the collapse of the economy and a return to the stranglehold of the IFIs [International Financial Institutions], we have no choice but to pass it [E-levy],” he stated.
However, Prof Atuguba cautioned government to stop “lying” to the citizenry.
He noted that the Akufo-Addo administration must “come clean and confess that you had thought the managing of the economy was simple.”
“Ghanaians are smart and empathetic and will gladly support the E-levy if this is done right,” he added.
E-Levy
Finance Minister Ken Ofori-Atta, presenting the 2022 budget on Wednesday, November 17, announced that government intends to introduce an electronic transaction levy (e-levy).
The levy, he revealed, is being introduced to “widen the tax net and rope in the informal sector”. This followed a previous announcement that the government intends to halt the collection of road tolls.
The proposed levy, which was expected to come into effect in January 2022, charges 1.75% on the value of electronic transactions. It covers mobile money payments, bank transfers, merchant payments, and inward remittances. There is an exemption for transactions up to GH¢100 per day.
Explaining the government’s decision, the Finance Minister revealed that the total digital transactions for 2020 were estimated to be over GH¢500 billion (about $81 billion) compared to GH¢78 billion ($12.5 billion) in 2016.
Thus, the need to widen the tax net to include the informal sector.
Although the government has argued that it is an innovative way to generate revenue, scores of citizens and stakeholders have expressed varied sentiments on its appropriateness, with many standing firmly against it.
Even though others have argued in support of the levy, a section of the populace believe that the 1.75% e-levy is an insensitive tax policy that will deepen the already prevailing hardship in the country.
