The Minority National Democratic Congress Members of Parliament are happy the Akufo-Addo government failed to meet half of the 2022 revenue projection especially from the Electronic Transaction Levy (E-Levy).
The Minority Leader in Parliament, Haruna Iddrisu who expressed the group’s happiness over the failure to meet the target attributed it to the stiff opposition and constructive criticisms the group mounted against the approval of the E-Levy policy which resulted in the government reducing the proposed rate of 1.75 percent to 1.50 percent.
Speaking on the issue, during an encounter with the members of the Parliamentary Press Corps (PPC) he noted that “This minority succeeded in reducing percentage the Finance Minister came to Parliament with”.
According to him his intention was 1.75 per cent but he was forced to cut it down. There were many other activities that would have been captured by E-Levy, they’ve abandoned it.
“Thanks to the opposition and our constructive criticisms explain the policy to be able to improve, including, remittances”, noted Haruna Iddrisu.
Minority Leader further explained that “Even more importantly, government has already lost half-year revenue of whatever it anticipated from E-Levy. That can only be attributed to the purpose and tenacity of the Minority Group in Parliament. You may be dissatisfied with us. We just took a legal step, with probably, we may not satisfy you but I don’t think that it’s all wrong”.
Mr. Iddrisu who is also the NDC MP for Tamale South had encounter with the Press to give an update about what the House has been able to achieve over the last six months and what it is expected to do in the coming months.
Mr. Iddrisu further stated that the Minority Group in Parliament will continue to ensure that Ghanaians are treated fairly by the government.
On Tuesday, March 29, 2022, the Parliament of Ghana approved the controversial 1.50 percent tax on electronic payments, known as the E-Levy, after the opposition NDC MPs walked out in protest.
The NDC MPs had claimed not to be part or associated with what they termed ‘killer’ and ‘unwarranted’ tax on Ghanaians.
The Finance Minister, Ken Ofori-Atta had proposed the E-Levy in November 2021 budget, to widen the tax net to mobilize more revenue to address Ghana’s financial woes.
However, his proposal hit a snag after the NDC MPs opposed the deal and demanded that the 1.75 percent rate should be reduced to 1 percent. They, therefore, called for the proposed tax policy to be withdrawn and a new one introduced.
After back and forth arguments over the tax proposal, it was withdrawn and a new proposal introduced, this time proposing a rate of 1.50 percent.
Even with the new proposed rate, the Minority Group wasn’t satisfied, compelling them to walk out during the consideration of the policy.
The E-Levy covers mobile money payments, bank transfers, merchant payments, and inward remittances.
The Government has projected to raise GHS6.9billion in revenue from the E-Levy in 2022.
– BY Daniel Bampoe