Parliament on Wednesday approved the amended electronic transaction levy bill, paving way for the rollout of the policy.
The bill will reduce the rate for the levy from 1.5 to 1 percent.
This follows a decision by Finance Minister Ken Ofori-Atta to restore the scrapped 100 cedis daily threshold exemption due to threats from the Minority.
The Minority caucus had threatened to reject the new E-levy bill if the scrapped daily threshold exemption is not restored.
According to the Minority caucus, mobile money users are predominately low-wage earners and the scrape of the daily threshold will overburden them, worsening their plight in the present predicament.
They also argued that it will force people to desist from using mobile money and eventually, vendors will lose their jobs too.
Presenting the 2023 budget statement and economic policy, the Minister of Finance, Ken Ofori-Atta that government will “review the E-Levy Act and, more specifically, reduce the headline rate from 1.5 percent to 1 percent of the transaction value as well remove the daily threshold.”
The E-levy review, among other reforms and interventions, according to the Finance Minister, forms part of revenue measures aimed at restoring macro-economic stability and accelerating economic transformation.
The move, he also said, is in response to proposals the government has received for a review of the levy.
“Government has consistently indicated its intention to improve the revenue collection effort by leveraging technology to enhance tax administration, identify and register taxable persons, and improve tax compliance.
“Government has received several proposals for a review of the Electronic Transfer Levy, and is working closely with all stakeholders to evaluate the levy’s impact in order to decide on the next line of action – which will include a revision of the various exclusions.
“As a first step, however, the headline rate will be reduced to 1 percent of the transaction value alongside removal of the daily threshold,” he said.
As other means to aggressively mobilise domestic revenue, Mr. Ofori-Atta also announced “an increase in the VAT rate by 2.5 percent to directly support our roads and digitalisation agenda; and Fast-tracking implementation of the Unified Property Rate Platform programme in 2023.
By: Bernard Ralph Adams | Metrotvonline.com | Ghana