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Business News of Friday, 26 November 2021

Source: www.ghanaweb.com

Key personalities who have commented on e-levy

E-levy was introduced in the 2022 budget E-levy was introduced in the 2022 budget

1.75% tax has been placed on electronic transaction

Majority in Parliament wants e-levy in 2022 budget approved

NDC has described e-levy has draconian

On November 17, 2021, Finance Minister, Ken Ofori-Atta, during the 2022 budget reading in parliament, announced the introduction of 1.75% tax on all electronic transactions.

According to him, this new directive forms part of strategies to widen the country’s tax net.

He added that the 1.75% tax is also to enhance financial inclusion and protect the vulnerable in the country.

Though this e-levy has received public backlash, the Finance Minister, Ken Ofori-Atta, has said government will find a way to win the cooperation of the Minority in parliament to accept the e-levy.

He also urged that public embrace this new tax.

GhanaWeb business in this article outlines some personalities who have welcomed the levy and those who have tongue-lashed government for announcing this policy.

E-levy is a brilliant move by government - Nana Akomea

On Wednesday, November 24, the Managing Director of STC, Nana Akomea, called on Ghanaians to embrace the 1.75% tax placed on all electronic transactions.

He described the move as brilliant, asserting that it was the only way government could account for the economic activities in the country.

I support the E-levy - Kweku Baako

Seasoned Journalist, Kweku Baako Jnr, threw his weight behind government's 1.75% policy.

Speaking on Peacefm Kokrokoo morning show on Wednesday, November 24, he said inasmuch as he doesn't understand the policy, he's ready to abide by it.

"In principle, though I don't understand it, I'm prepared to go along because I'm convinced that there is a need for a certain [you know] tax that will give us space in order to be able to do things. So, I'm not totally opposed to it...," he said.



MoMo tax needs a lot of education – Napo

Energy Minister, Dr Mathew Opoku Prempeh, said Ghanaians need to be educated on the e-levy.

Speaking on the New Day show on TV3 he said the levy affects specific transactions and not all.

“The implementation is going to come with education, not everything that is affected. For example, less than hundred cedis transaction is not affected. There is a lot of education that needs to be done,” he said on November 18.

Government relieving the rich, heavily taxing the poor - Sam George

The Member of Parliament for Ningo-Prampram, Sam Nartey George, has accused government of impoverishing the poor by introducing a 1.75% tax on all electronic transactions.

According to him, the e-levy rather relieves the rich because they have the means to pay the capped amount.

Speaking to GhanaWeb’s business desk post the budget reading, Sam George explained that the poor are now taking advantage of mobile money after understanding how it works, therefore, the newly introduced tax is unnecessary.

E-levy draconian - NDC youth organizer

National Youth Organizer of the opposition National Democratic Congress (NDC), George Opare Addo, has described the newly introduced tax on all electronic transactions as draconian.

According to him, majority of entrepreneurs in the country rely on electronic payments for the transaction of business.

In a press release sighted by GhanaWeb, George Opare Addo said, the 1.75% e-levy will negatively impact businesses.

He furthered that this e-levy will compound the burden of Ghanaians, especially young entrepreneurs amidst the economic hardship.

The NDC has noted that it will reject the 2022 budget if not the newly introduced tax is not reviewed.