2023 Budget: E-levy Rate To Be Reduced To 1% …VAT Rate To Go Up 2.5%


Government has proposed reduction in the controversial Electronic Transfer Levy, commonly called E-levy which has been pegged at 1.5 percent to 1 percent.

The daily threshold will also be reviewed, following several proposals received by government.

Ken Ofori-Atta, Finance Minister announced this when presenting 2023 budget statement to Parliament on Thursday November 24.

E-levy which was introduced in the 2022 budget statement has performed poorly after raking in 10 percent of the expected revenue three months after its implementation.

Also, the Finance Minister has proposed in the 2023 budget an increment in the Value Added Tax (VAT) by 2.5 per cent.

VAT rate currently is 12.5 percent, except for supplies of a wholesaler or retailer of goods, which are taxed at a total flat rate of 3 percent.

According to the Mr. Ofori-Atta, the proposal to increase the rate forms part of the seven point agenda to revitalize the economy.

He further said that the government will undertake major structural reforms in the public sector.

The Finance Minister expressed Government readiness to restore the economy.

He said “The government is determined to change the negative narrative and rebuild for a better future.”

By Vincent Kubi

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