E-levy reduced from 1.75% to 1.5% – Afenyo-Markin

E-levy to enhance financial inclusion, Ofori-Atta

Reduction in e-levy to reflect at the enactment stage of the policy

In the revised 2022 budget approved by the Majority in parliament on Tuesday, November 30, 2021, the tax to be put on all electronic transactions and remittances has been reviewed downwards to 1.5%, Deputy Majority Leader, Alexander Afenyo-Markin, has said.

He explained that the review of the e-levy from 1.75% to 1.5% was due to the concerns raised by the Minority.

He added that the reduction of the e-levy is to lessen the impact of the tax on Ghanaians.

Speaking on Joy News’ PM Express programme, Afenyo-Markin said, “We have agreed on the policy, now government will come with a bill, in that bill we will go clause by clause and that is where the extended stakeholder consultation engagement will again come up. We will look at certain provisions and then deal with certain concerns… for nothing at all when it comes to the bill, we know that government has shifted from 1.75 to 1.5.”

Meanwhile, the reduction in e-levy will reflect at the enactment stage of the policy.

It would be recalled that on November 17, 2021, Finance Minister, Ken Ofori-Atta, during the 2022 budget reading in parliament, announced the introduction of 1.75% tax on all electronic transactions.

According to him, this new directive forms part of strategies to widen the country’s tax net.

He added that the 1.75% tax is also to enhance financial inclusion and protect the vulnerable in the country.

But several people have shared varied opinions on this e-levy. While some are for it, others – including the Minority in Parliament are against the 1.75% tax on all electronic transactions and remittances.