Deputy Majority Leader, Alexander Kwamina Afenyo-Markin has revealed that the government has agreed to reduce the 1.75% rate on the controversial electronic transaction (E-levy) by 0.25%.
He revealed on Joy News’ PM Express programme that aired on Tuesday, November 30, 2021, that the Finance Minister had already started consultations with necessary stakeholders to that effect.
“On the E-Levy, Finance Minister was engaging some other stakeholders and the result of that engagement if successful was going to be, there was going to be some 0.5%.
“So government is ready to do 1.5% which is some 0.25% down. So that when the 0.5% is successful, we could now go around it and the consumer will not feel it that much,” he added.
He added that other areas of concession that the caucuses agreed on with the Finance Minister were that the Agyapa deal be put on hold, room be made for the Blekuso defense wall but that the E-levy was the main sticking point.
What Ofori-Atta said about 1.75% levy on electronic transactions
Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.
Fees and charges of government services have also been increased by 15%.
The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.
“As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.
“To safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day, which is approximately ¢3000 per month, will be exempt from this levy,” Ofori-Atta revealed.
