Gyampo: E-Levy must be revised below 1 percent

Ransford Gyampo, an associate professor in the Political Science Department of the University of Ghana has called on the Majority to engage in further consultation with the Minority in Parliament to review the E-Levy downwards.

Speaking on the Asaase Breakfast Show on Friday(26 November ) Gyampo said reducing the levy below 1 percent will be in the good interest of taxpayers.

“My only problem as I have always said  is about the E-Levy ,initially my position was an outright blockade of that levy  but upon sober reflection and upon a sober thought , Iam of the view that the majority side and government must rethink quantum involved and do something about it so that it comes to a little below 1 percent,” he said

“Then we can also find time to explain to the loyal taxpayers , Iam talking about those of us who when we go and collect our salary (pay slip ) you cant look at the tax deduction component because it is too big.”

He added “I think that they should reach out to the minority side and dialogue with them behind the scenes  and let us see how we can have this E-Levy but in a manner that will not unduly impose burden on the poor and loyal taxpayers.”

Background

The government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector.

“Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%,” Ken Ofori-Atta told Parliament, “which shall be borne by the sender except for inward remittances, which will be borne by the recipient.

“This new policy comes into effect from 1 February 2022. The government will work with all industry partners to ensure that their systems and payment platforms are configured to implement the policy.”

As of January 2021, 38.9% of the population aged 15 and above had a mobile money account in Ghana.

The population share of mobile money users increased over the previous three years but fell slightly in 2021 from 39% in 2020.

Share of population with a mobile money account in Ghana (2018 to 2021)

Fred Dzakpata

Gh Extractives

Ghextractives.com is an independent multimedia portal that seeks to provide credible information and news content to readers especially players in the extractive sector in Ghana, Africa and beyond. It also provides a unique platform for players in the energy sector to market their products and reach a wider audience

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