Electronic Transaction Levy (commonly known as Electronic Levy or E-levy) is a tax applied on transactions made on electronic or digital platforms. [1] [2]
On 17 November 2021, Ken Ofori-Atta said the Government of Ghana decided to tax all electronic transactions in the informal sector to cover the tax net. [3] [4] He made this known in the 2022 budget statement and economic policy that was read in the parliament of Ghana. [5] 1.75% is the rate of the E-levy which the Government decided to apply on all transactions. [1] [6] [7] [8] Ken Ofori-Atta said it could raise about $1.15billion which will widen the tax net. [9] According to John Kumah, the money generated from the levy would be used for the payments of contractors in Ghana. [5] Also, revenue from the levy would be used to support entrepreneurship, cyber and digital security; road infrastructure and provide jobs to about 11million people in the country. [10] [11] [12] The Government of Ghana said that the introduction of the levy was due to the rise of the use of digital platforms for transactions because of the COVID-19 pandemic. [11]
It was proposed the E-levy would cover the following transactions:
Some Ghanaians were against the levy claiming it does not serve the interest of common people. [14] [15]
Some economists asked for the proposal to be reversed, claiming that it will jeopardize the government's digitalization efforts and plans to introduce the digital currency. [3] [16]
Haruna Iddrisu said the Minority in Parliament would not support the E-levy claiming it seeks to take away the money of a bigger proportion of Ghanaians in multiple phases. [17] [5]
In December 2021, brawl broke out in the Parliament of Ghana as some MPs of NDC and NPP started punching, ripping shirts, kicks and head-butting each other due to the disagreement of the E-levy bill. [18] [19]
Casiel Ato Forson claimed minority in parliament would reject the E-levy proposal. [20] [21] Kojo Oppong Nkrumah claimed changes were made the E-levy bill after consultations were held, [22] and would be passed when Alban Bagbin is presiding. [23]
Joseph Osei Owusu adjourned sitting of parliament without the passage of the bill into an Act. [24]
Asiedu Nketiah has presented some E-Levy alternatives. The measures, he claims, will exacerbate the deficit that will be produced if the government abandons the contentious electronic transfer levy. [25]
Shatta Wale, a dancehall musician, has weighed in on Ghana's contentious E-vey bill, which has been trending for weeks. According to him, lawmakers that are eager to introduce the electronic transaction tax are unconcerned about Ghanaians' plight. [26]
MTN and AirtelTigo decided to reduce about 25% on their person-to-person mobile money transfer charges should the levy be passed. [27]
E-levy has been passed by parliament and will take effect from 1st May, 2022. Despite the passage of e-levy, the minority in Ghana's parliament are set to challenge it, at the supreme court. According to them the passage of e-levy is illegal because parliament lacked the required numbers to do so. [28] [29]
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Electronic Transaction Levy (commonly known as Electronic Levy or E-levy) is a tax applied on transactions made on electronic or digital platforms. [1] [2]
On 17 November 2021, Ken Ofori-Atta said the Government of Ghana decided to tax all electronic transactions in the informal sector to cover the tax net. [3] [4] He made this known in the 2022 budget statement and economic policy that was read in the parliament of Ghana. [5] 1.75% is the rate of the E-levy which the Government decided to apply on all transactions. [1] [6] [7] [8] Ken Ofori-Atta said it could raise about $1.15billion which will widen the tax net. [9] According to John Kumah, the money generated from the levy would be used for the payments of contractors in Ghana. [5] Also, revenue from the levy would be used to support entrepreneurship, cyber and digital security; road infrastructure and provide jobs to about 11million people in the country. [10] [11] [12] The Government of Ghana said that the introduction of the levy was due to the rise of the use of digital platforms for transactions because of the COVID-19 pandemic. [11]
It was proposed the E-levy would cover the following transactions:
Some Ghanaians were against the levy claiming it does not serve the interest of common people. [14] [15]
Some economists asked for the proposal to be reversed, claiming that it will jeopardize the government's digitalization efforts and plans to introduce the digital currency. [3] [16]
Haruna Iddrisu said the Minority in Parliament would not support the E-levy claiming it seeks to take away the money of a bigger proportion of Ghanaians in multiple phases. [17] [5]
In December 2021, brawl broke out in the Parliament of Ghana as some MPs of NDC and NPP started punching, ripping shirts, kicks and head-butting each other due to the disagreement of the E-levy bill. [18] [19]
Casiel Ato Forson claimed minority in parliament would reject the E-levy proposal. [20] [21] Kojo Oppong Nkrumah claimed changes were made the E-levy bill after consultations were held, [22] and would be passed when Alban Bagbin is presiding. [23]
Joseph Osei Owusu adjourned sitting of parliament without the passage of the bill into an Act. [24]
Asiedu Nketiah has presented some E-Levy alternatives. The measures, he claims, will exacerbate the deficit that will be produced if the government abandons the contentious electronic transfer levy. [25]
Shatta Wale, a dancehall musician, has weighed in on Ghana's contentious E-vey bill, which has been trending for weeks. According to him, lawmakers that are eager to introduce the electronic transaction tax are unconcerned about Ghanaians' plight. [26]
MTN and AirtelTigo decided to reduce about 25% on their person-to-person mobile money transfer charges should the levy be passed. [27]
E-levy has been passed by parliament and will take effect from 1st May, 2022. Despite the passage of e-levy, the minority in Ghana's parliament are set to challenge it, at the supreme court. According to them the passage of e-levy is illegal because parliament lacked the required numbers to do so. [28] [29]
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cite web}}
: |first=
has generic name (
help)