Dr. Joshua Bampo, a tax expert, has urged the government against reviewing the 1.5% levy on all electronic payments over GHC 100 each day.
He believed that given the ongoing economic crisis and rising debt levels, it was not the appropriate moment for the government to change its taxation policies.
His remark followed the Finance Minister Ken Ofori-press Atta’s conference declaration in Accra that the E-Levy program will be reviewed.
The tax expert explained that the implementation of the E-Levy was done in order to increase revenue for the government and pay for the majority of the expenses included in the 2022 budget on TV3’s Ghana Tonight program.
He pointed out that, “This will not be the right time for us to make a case for a withdrawal of the E-Levy. We all know where we are as a nation in terms of economic challenges we are facing, the E-Levy was part of our revenue budget in order to use to meet our budgeted expenses.”
“If you look at our current budget, just financing of it is in debt and payment of public salaries, it takes a big chunk of that projected revenue…You are then left with almost little for capital projects that are needed to stimulate the economy and create job opportunities. So taking away or withdrawing E-Levy I don’t think it is something that should be considered at this point,” he added.
It would be recalled that the Finance Minister, Ken Ofori-Atta, on Wednesday, September 28, 2022, hinted that government will soon review the Electronic Transfer Levy (E-Levy).
The proceeds from the E-Levy, he said, were woefully below projected numbers with only about 10% of the projected GH¢600 million monthly being realized.
Speaking at a briefing in Accra on Wednesday, September 28, 2022, Ken Ofori-Atta said that the review of the E-Levy forms part of measures to help improve the government’s domestic revenue mobilisation.
He added that the review will also rope in many Ghanaians in this tax policy.