The former Executive Director of the Danquah Institute, Gabby Otchere-Darko, has questioned why Ghanaians who are mounting pressure on government to fix the country are against government’s decision to raise revenue through levies.
This comment by the NPP kingpin comes after a section of Ghanaians opposed government’s introduction of E-levy to undertake developmental projects.
Speaking on the floor of Parliament on 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.
Scores of Ghanaians took to social media to pour out their frustrations on the introduction of the levy.
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Commenting on the levy in a tweet, The former Executive Director of the Danquah Institute and a leading member of the New Patriotic Party (NPP) described Ghana’s development as a paradox in that persons challenging government to fix the country do not want to be taxed.
“Ghana’s development paradox. You say you want the country fixed. Yet, you are against raising revenue to get it fixed! Motives matter!, ” Gabby Otchere-Darko said in a tweet.
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