28.1 C
Accra
Monday, April 22, 2024
NewsWasn't e-levy introduced to help govt generate revenue, what went wrong? -...

Date:

Wasn’t e-levy introduced to help govt generate revenue, what went wrong? – Student quizzes Bawumia

A student at the University of Media, Arts and Communication (UNIMAC) has challenged Vice President Dr. Mahamudu Bawumia’s commitment to eliminating the Electronic Transfer Levy (E-Levy) once he assumes the presidency of Ghana.

In an interview with TV3, the UNIMAC student expressed skepticism about Bawumia’s decision to reverse an initiative introduced by his own government, questioning his credibility.

The student believes that Bawumia’s stance portrays Ghanaians as easily manipulated individuals.

- Advertisement -

“E-levy he bought himself scraping it off as in how? I mean sometimes they say things that they think that the youth are foolish, I don’t know if I can use the word. For me I think it doesn’t make sense. Scrapping it, he brought it, you are taking us on a path that you think is leading us on the right place and at the end of the day you are blacking us off telling us you will scrap it. Are you lying to us? I mean everyone knows what he is saying doesn’t make sense,” he added.

The E-levy, introduced by the Akufo-Addo-led administration in the 2022 Budget, targets basic digital payments and electronic platform transactions exceeding GH¢100 daily.

It’s crucial to distinguish this levy from the 1 percent charge imposed by telecommunication companies on transactions.

Upon its inclusion in the 2022 Budget statement, the E-levy stirred controversy, raising concerns about potential double taxation and its impact on the economic challenges faced by ordinary Ghanaians.

- Advertisement -

Critics argue that the levy could disproportionately affect low-income earners who heavily rely on daily mobile money transfers for their livelihoods.

On February 7, 2024, Dr. Bawumia declared his intention to abolish the tax on electronic financial transactions, emphasizing its role in achieving a digital and cashless economy.

- Advertisement -

“To transition to a cashless economy, we need to encourage the use of electronic payment channels. To facilitate this, there will be no taxes on digital payments under my administration. Therefore, the e-levy will be abolished,” he added. 

Dr. Bawumia also outlined plans to eliminate the emission tax, betting tax, and the proposed 15% VAT on electricity tariffs.

He further announced the introduction of a straightforward and business-friendly flat tax regime in Ghana, with a focus on providing support to individuals and businesses, particularly small and medium-scale enterprises (SMEs).

“My administration will implement a straightforward, citizen- and business-friendly flat tax regime.” 

“This will involve a flat tax percentage of income for individuals and SMEs, which represent 98% of all businesses in Ghana, with appropriate exemption thresholds to safeguard the poor.” 

Latest stories

Mahama promises to fix Free SHS policy in first 100 days of office

Flagbearer of the opposition National Democratic Congress (NDC), John...

“In the tapestry of life, you wove a beautiful story” – Nacee mourns KODA

Ghanaian gospel icon Nacee has shared heartfelt sorrow at...

Ayeh-Paye backs govt, ECG’s excuse that there is no ‘dumsor’

Despite the incessant power outages disrupting homes and businesses...

We lost to Legon Cities because of ‘dumsor’, water shortage – Hearts of Oak coach

Hearts of Oak's head coach, Abubakar Ouattara, has attributed...

Five missiles launched from Iraq into Syrian American military facility

At least five rockets were fired from the town...

Who was Ghanaian gospel musician KODA?

Augustine Kofi Owusu Dua Anto, popularly known as KODA,...

Flashback: KODA reveals how a doctor prescribed a wrong medication to him

Renowned Ghanaian gospel musician Kofi Owusu Dua Anto, widely...

Related stories

Mahama promises to fix Free SHS policy in first 100 days of office

Flagbearer of the opposition National Democratic Congress (NDC), John...

Ayeh-Paye backs govt, ECG’s excuse that there is no ‘dumsor’

Despite the incessant power outages disrupting homes and businesses...

Who was Ghanaian gospel musician KODA?

Augustine Kofi Owusu Dua Anto, popularly known as KODA,...

Nonsense! A nation without leadership – Prophet Kofi Oduro fumes over ‘dumsor’

Prophet Kofi Oduro of Alabaster International Ministry has strongly...

Nothing shows Bawumia can win 2024 elections -Kwesi Pratt 

Managing Editor of the Insight Newspaper, Kwesi Pratt Jnr....

LEAVE A REPLY

Please enter your comment!
Please enter your name here