During the presentation of the 2022 budget dubbed ‘Agyenkwa budget’, the Finance Minister, 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%.
Ofori-Atta in his budget presentation to Parliament 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.
But speaking to Parliamentarians on Tuesday, November 30, during the approval of the budget after it was rejected by the House on Friday, November 26, the Finance Minister indicated that the government of Ghana is having discussions with the various telecommunications companies over the 1.75% proposed E-levy.
“We have considered the issues of the 1.75% e-levy in which we are in discussions with the telcos and to scale back to moderate their impact so that in the end, the impact on the citizenry will be manageable,” Ken Ofori-Atta told the MPs.
“We have 11million people who are youth and we have in this budget, introduced the largest ever youth programme of GHC10 billion to ensure that the entrepreneurial nation that we seek will be achieved and the issues of the indecency of jobs and dignity of our youth working will be things of the part,” he added.
The Finance Minister’s statement was in response to some concerns raised by the Minority caucus over the levy.
The Minority in a statement asked the government to “suspend the e-levy and properly engage stakeholders to agree on a reasonable policy.
“The policy is not progressive, not pro-poor, and does not support the much-touted digitalisation agenda and cash-lite economy that we all yearn for.”