Notwithstanding a recent decrease in the rate from 1.5% to 1%, the Tax Justice Coalition (TJC) has urged the government to quickly abolish Electronic Transfer Levy (E-Levy).
The coalition said the levy has now become a “nuisance” tax.
The reduction came into effect after the levy failed to meet the set revenue target in the heat of the economic crisis caused by the global pandemic and Putin’s war in Ukraine.
Players in the telco space have also been raising concerns over the low-running and ineffective mobile money service.
The Finance Minister Ken Ofori-Atta first announced the decision to reduce the levy from 1.5% to 1% on Thursday (24 November 2022) during the 2023 Budget Statement presentation in Parliament.
Addressing a news conference in Accra on Thursday (9 March) on the theme: “An analysis of the 2023 annual budget and economic policy” in Accra, the chairperson of TJC, Vitus Azeem, said E-Levy is now defeating the government’s cashless agenda.
“TJC Ghana particularly calls on the government not to implement the 15% VAT increase and totally scrap the E-Levy and focus more seriously on implementing the more progressive taxation of income, wealth and property,” he said.
“TJC Ghana also recommends that the social intervention continue as proposed,” Azeem added.