The Minority in Parliament walked out during the debate on the Electronic Transactions Bill (E-Levy), there are some lawsuits against its implementation and the public has largely opposed it, but today May 1, 2022, the Ghana government has gone ahead to start charging the tax.
The E-Levy imposes an additional 1.5 per cent charge on electronic transactions including bank and Mobile Money.
When opposition to the bill heightened, when it was introduced, the Finance Minister, Ken Ofori-Atta proposed a reduction in the rate from 1.75 to 1.5 per cent.
Citizens already pay a one per cent charge on Mobile Money transactions and many have argued against it in the face of deepening financial crisis in the country, due to many factors including the country’s growing debt burden, now above 80 per cent, the impact of the COVID-19 pandemic and what many citizens believe to be mismanagement of the economy.
Due to the country’s high debt-to-GDP ratio its credit worthiness has been lowered, making it impossible for the country to borrow, compelling the government to look for domestic sources for revenue generation.
Even though the tax has been described as regressive and punitive, citizens have not mounted civil protests against it.
This morning on social media, Ghanaians are sharing their experiences with the new tax.
By Emmanuel K. Dogbevi
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