An Economist and Lecturer at the C.K Tadem’s University of Applied Sciences (C.K.T UTAS), Bismark Osei has waded into the controversy surrounding the Electronic Transactions Levy. Mr. Osei described it as a powerful means of raising revenue for development.
In an interview on the Daybreak Upper East show on A1 Radio on Thursday, December 2, 2021, Mr. Osei noted that it was important for the government to place taxes on all electronic transactions as that will be an ingenious way of raising revenue for development.
He added that approving the E-Levy has become necessary considering that a majority of the country’s financial transactions are done digitally.
He indicated that the policy will help close revenue gaps as it will rope in a majority of the population.
“The electronic levy needs to be passed because the most vibrant aspect of this economy are these electronic transactions. As of last year to this year June, electronic transactions; MoMo alone has surpassed that of cheque by GHC 232b. So, it is one of the vibrant and powerful responses to raise money. So electronic levy has to be there,” Mr. Osei explained.
Although Mr. Osei is in full support of the E-Levy policy, he expressed reservations about the percentage of charges. He stated that the charge of 1.75 percent is exorbitant and has the potential of compounding the woes of the poor.
He has thus appealed to the government to reduce it to 1.75 percent. “The 1.75% is too much; I thought 1% will do. We are working towards financial inclusion through this electronic transaction, cashless system; so to me 1% is okay. Let’s begin with 1%, let people know how much you have raised and how this money will be put into important aspects of the economy. To me, 1% would have been okay, 1.75% is too high”. he added.
Meanwhile, the Deputy Majority Leader and Member of Parliament for Effutu constituency, Alexander Afenyo Markin in an interview with Joy News’ Evans Mensah on PM Express monitored by A1 Radio online.com, indicated that the percentage to be charged on the electronic transactions levy will be reduced from 1.75% to 1.5%.
According to him, the reduced charge was contained in the revised version of the 2022 budget statement and economic policy presented by the finance minister.
He said the reduction of the policy is a testament to the fact that the government has a listening ear to the concerns raised by the minority.
A1Radioonline.com|101.1MHz| Elijah Beyeni Yenibey | Ghana
