The National Democratic Congress (NDC) Member of Parliament for Ningo Prampram, Samuel Nartey George has dragged the Ministry of Communication and the National Communication Authority (NCA) for failing to engage Telcos on the E-levy.
Government has announced 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.”
“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.
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In a tweet, the Ningo Prampram lawmaker, who seemed displeased with the development, called the managers of NCA and the Ministry of Communications clueless for trying to organize a meeting with the telcos after the budget have been read.
“Let me state for the records that the govt HAS NOT engaged any of the service providers in the telecoms space on how the draconian ‘digital tax’ would be implemented. How do you announce a tax when those to implement it & be affected by it are left in the dark? Clueless bunch.”
“The NCA and the Ministry of Communications are now inviting Telcos and Service providers in the space to a meeting on Friday to discuss implementation of a policy announced in the budget? Such a clueless bunch of managers. Post facto thinking, ” Sam George said in a tweet.
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