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Business News of Thursday, 18 November 2021


Electronic Transaction Levy to erode gains made in cashless system – Ato Forson

Ranking Member of Parliament’s Finance Committee, Dr. Cassiel Ato Forson Ranking Member of Parliament’s Finance Committee, Dr. Cassiel Ato Forson

Ken Ofori-Atta has delivered the 2022 budget statement

Levy to take effect from January 1, 2022 once the appropriation is passed

A 1.75% charge has been slapped on electronic transactions

Cassiel Ato Forson, Ranking Member on the Finance Committee of Parliament said the decision to introduce the electronic transaction levy will adversely erode efforts made in the cashless economy space.

According to him, the newly introduced tax slapped on Mobile Money, bank transactions and other electronic transaction is likely to push away citizens from engaging in digital transactions.

In an interaction on Joy FM, Ato Forson explained, “This budget is going to erase the cashless economy that we are talking about. People are now going to keep their monies at home, people are now going to carry monies at the back of their cars, people are now going to trade with physical cash because any transaction you engaged in with the bank you are going to pay transfer tax…today, we are confronted with a situation that the very thing that we are doing to actually help the cashless economy, today we are erasing all of that”

“…to the extent that businesses are going to suffer…the companies deal with transfers and the transfers will certainly increase their cost of doing businesses because now every transfer the company does, they are going to pay 1.75% including the wages and salaries of employers. The company then will introduce the cost to the client and it goes on and on and it is going to distort the economy,” Ato Forson added.

The Finance Minister, Ken Ofori-Atta on November 17, 2021 announced the introduction of the Electronic Transaction levy, which will be waived for transactions that amount to GH¢100 or less in a day or approximately GH¢3,000 per month.

The implementation of the newly introduced e-transaction levy is expected to take effect from January 1, 2021 once the appropriation of the 2022 Budget Statement is passed by Parliament.