The implementation of the electronic transaction levy (otherwise known as E-levy) is gradually collapsing our businesses, the Public Relations Officer of the Mobile Money Agents Association Charles Kwasi Addo has said.
According to him, some Mobile money vendors in the country have been losing their jobs since the implementation of the controversial E-levy.
He told Sompa FM that patronage is now on the low since the introduction of the transaction levy.
Mr Kwasi Addo however pleaded with the Akufo-Addo led government to as soon as possible attend to their grievances and provide a lasting solution to it before their businesses collapsed.
The E-levy is a tax applied on transactions made on electronic or digital platforms.
On November 17, 2021, the finance Minister, Ken Ofori-Atta said the Government of Ghana decided to tax all electronic transactions in the informal sector to cover the tax net.
He made this known in the 2022 budget statement and economic policy that was read in the parliament of Ghana.
The Minister said 1.75% was the rate of the E-levy which the Government decided to apply on all transactions.
Ken Ofori-Atta said it could raise about $1.15billion which will widen the tax net
According to John Kumah, the money generated from the levy would be used for the payments of contractors in Ghana.
He added that revenue from the levy would be used to support entrepreneurship, cyber and digital security; road infrastructure and provide jobs to about 11million people in the country.
The Government of Ghana said that the introduction of the levy was due to the rise of the use of digital platforms for transactions because of the COVID-19 pandemic.
It was proposed the E-levy would cover all inward remittances (which would be paid by the recipient), person-to-person (P2P) mobile transactions (which includes sending of funds to another account, payment for goods and services, payment of utilities and all POS/Merchant payments.
The Controversies
Since the introduction of the levy, some Ghanaians were against the levy claiming it does not serve the interest of common people.
Some economists asked for the proposal to be reversed, claiming that it will jeopardize the government’s digitalization efforts and plans to introduce the digital currency.
Haruna Iddrisu, the Minority leader in Parliament said they would not support the E-levy claiming it seeks to take away the money of a bigger proportion of Ghanaians in multiple phases.
In December 2021, brawl broke out in the Parliament of Ghana as some MPs of NDC and NPP started punching, ripping shirts, kicks and head-butting each other due to the disagreement of the E-levy bill.
Casiel Ato Forson claimed minority in parliament would reject the E-levy proposal.
The information Minister, Kojo Oppong Nkrumah claimed changes were made the E-levy bill after consultations were held, and would be passed by Parliament.
The General Secretary of the NDC, Johnson Asiedu Nketiah presented some E-Levy alternatives. The measures, he claimed, will exacerbate the deficit that will be produced if the government abandons the contentious electronic transfer levy.
Shatta Wale, a dancehall musician, also weighed in on Ghana’s contentious E-vey bill, which trended for weeks. He said, lawmakers that were eager to introduce the electronic transaction tax were unconcerned about Ghanaians’ plight.
MTN and AirtelTigo decided to reduce about 25% on their person-to-person mobile money transfer charges should the levy be passed.
E-levy was then passed by parliament and started taking effect from May 1, 2022. Despite the passage of e-levy, the minority in Ghana’s parliament protested, at the supreme court, claiming the passage of e-levy was illegal because parliament lacked the required numbers to do so.