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Business News of Friday, 19 November 2021


E-levy will not stifle entrepreneurship or cripple businesses – Ken Ofori-Atta

Finance Minister, Ken Ofori-Atta play videoFinance Minister, Ken Ofori-Atta

A 1.75% levy on electronic transactions has been imposed

Ken Ofori-Atta believes it will not discourage entrepreneurship

The levy is expected to take off from January 1, 2022

Minister for Finance and Economic Planning, Ken Ofori-Atta has justified that the newly introduced Electronic Transaction Levy does not seek to discourage entrepreneurship or burden the existing businesses.

According to him, the rationale for the 1.75 percent levy imposed on electronic transactions will rather provide government the additional funds to support local entrepreneurs as it seeks to shore up revenue and rope in the informal sector in the tax net.

In an interaction on Accra-based Asaase Radio, Ken Ofori-Atta said the new tax policy will in no way stifle the growth and development of businesses.

“Through the levy [E-levy], government is able to do about a billion Cedis each year for three years. Through the agreements that we’re having with some donors and international financial institutions, we get another 2 billion for this effort,” he explained

“In speaking with the partnership of the banks, we are getting a certain amount of their loans into this SME which will be about 5 billion. So, together we’ve been able to put together a 10 billion package to support the youth towards entrepreneurship,” Ofori-Ataa added.

The introduction of the e-levy has however been met with some discontent from a section of the Ghanaian public.

The Minority in Parliament on their part have labeled the tax policy as draconian, insensitive, and one that will erode gains made towards a cashless economy.

The policy is expected to be implemented from January 1, 2022 once the appropriation is passed by Parliament.