Chief Executive of the Ghana Chamber of Telecommunications, Ken Ashigbey, has revealed that the recently implemented Electronic Transaction Levy (E-Levy) is gradually becoming a threat to the government’s digitalization agenda.
Mr Ashigbey said, as per data available to the Chamber, revenue generated from the levy, at a rate of 1.5%, is below the belt and is unable to substantially contribute to the growth of the digital agenda.
Speaking at the Bank of Ghana’s Regulatory Sandbox Engagement Forum in Accra on Wednesday, October 5, 2022, he said, “if you look at the data, E-Levy currently, the way it is situated is slowing down [our] own digital agenda and possibly also having a negative impact on government’s own revenues.”
The E-levy is one of the domestic initiatives implemented by the Akufo-Addo government to help raise more revenue to address the current economic difficulties.
According to reports, because the levy was met with strong public opposition prior to its implementation, less than the projected revenue of GH600 million has been generated in a month.
Mr Ashigbey has urged the public to help the government increase its ability to make money from the digital environment.
“Let’s take advantage of this opportunity that has been given to us to find ways in which we can support the government with the challenges that abound. And also to help our people within this economy, we find ourselves”, he stated.
The IMF and Ghana’s E-levy Earlier this month, while speaking with the press about the progress of the Ghana-IMF negotiations, Finance Minister Ken Ofori-Atta revealed that the E-levy will be reviewed by the government.
“Such exercises form part of an ongoing drive to ensure we take significant steps forward in remedying long-standing challenges with domestic revenue mobilization, indiscipline, corruption and leakages,” he said.
“Of course, heightened tax compliance and increased tax audit exercises will continue to be complemented by policy initiatives that allow us to tap into a wider pool of taxpayers in the years ahead.
Therefore, we are looking at areas around the E-Levy to ensure its efficient implementation,” the Minister mentioned.
Per information from the Finance Ministry, the government is raking in just 10 percent of the estimated amount from the E-levy.
Source: The Independent Ghana