Member of Parliament for Sefwi Akontombra Constituency and Vice Chair for the Roads and Transport committee in Parliament , Alex Tetteh Djornubuah , says the introduction of 1.75% tax on electronic transactions is not a replacement for the abolished road toll.
This statement by the lawmaker comes after the introduction of a 1.75% E-Levy on all Electronic transactions.
Speaking on the floor of Parliament today Wednesday 17th November 2021, Finance Minister, Ken Ofori Attah stated the tax will widen the tax net and rope in the informal sector.
He added that Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient.
According to Ofori Atta, the total value of transactions for 2020 was estimated to be over GHS 500 billion as compared to GH¢78 billion in 2016 while total mobile money subscribers and active mobile money users have grown by an average rate of 18% and 16% respectively between 2016 and 2019.
“After considerable deliberations, Government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the “Electronic Levy or E-Levy.”
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“Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except inward remittances, which will be borne by the recipient, ” Ken Ofori Atta told Parliament.
Speaking ot host of Atinka FM’s AM Drive, Kaakyire Ofori Ayim, Member of Parliament for Sefwi Akontombra Constituency and Vice Chair for the Roads and Transport Committee in Parliament, Alex Tetteh Djornubuah stated that the levy is to widen the tax net and rope in the informal sector.
According to him, government considered a lot of factors before taking the decision to scrap the road toll.
“ Aside the toll posing a lot of traffic situations, it is not all road users who pay the toll. For instance those who live around East Legon, Spintex and Adentan do not pay toll. And persons who live in these vicinities are considered to be living in the prestigious areas,” , Alex Tetteh Djornubuah told Kaakyire Ofori Ayim.
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