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General News of Thursday, 9 December 2021

Source: www.ghanaweb.com

Social media users lambast Carlos Ahenkorah over E-levy comment

Tema West Member of Parliament, Carlos Ahenkorah

Carlos Ahenkorah is under fire on social media

Ahenkorah's recent comments on E-levy hasn't been well received

The E-levy remains a controversial issue among MPs


Tema West Member of Parliament, Carlos Ahenkorah, has come under fire from social media users for recent comments on the controversial E-levy.

Ahenkorah told journalists yesterday (December 8, 2021) that the E-levy brouhaha with respect to the use of Mobile Money (MoMo) service was not needed because it applied strictly to persons who decide to use the particular electronic transaction mode.

Finance Minister Ken Ofori-Atta in the 2022 budget noted that the electronic transaction levy will be set at 1.75% and will be taxed on all transactions that exceed GH¢100 per day. The impact of the tax has particularly been raised on MoMo transactions which have become very popular.

In explaining his position on the tax, Ahenkorah said: “I will tell you something, I have always been saying that the MoMo tax is not a compulsory tax, you only pay when you use it. If you don’t use it you don’t pay so for me, there is no way any other procedure for making payments is going to equal MoMo.”

He explained further: “Right now, what we are saying is the tax is targeted at those who have the ability to pay, not those who are receiving. If you are receiving it is okay to go and negotiate with the person who has gone to the bank to borrow money and be a MoMo agent, pay money out, otherwise keep the money on your phone and you don’t pay any money.

“It is money targeted at those who want to use the service, even if I stand here and tell people that if you like don’t pay or if you like don’t use MoMo, I tell you, using MoMo will be far cheaper. If you think using the MoMo service is difficult or expensive, you try taking your money out there and even see.”

The tax has become a major sticking point between the Majority and Minority in Parliament. The Minority have announced an outright rejection whiles government said it is mulling a reduction of the rate.

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A number of social media users are not pleased with Ahenkorah's commentary. Whereas some point to the lack of comprehension in his view, others have regurgitated his ballot snatching incident of early January 2021 to hit out at him.



Below are some reactions:


















What Ofori-Atta said about 1.75% levy on electronic transactions

Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.

Fees and charges of government services have also been increased by 15%.

The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.

"As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.

"To safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day, which is approximately ¢3000 per month, will be exempt from this levy,” Ofori-Atta revealed.