Member of Parliament for the Binduri Constituency in the Upper East Region, Abdulai Abanga has said, most people in his constituency would not be affected should the controversial Electronic Transaction Levy Bill in Parliament be passed. Mr. Abanga argued most of the people transact less than Gh¢100.00 per day.
The Electronic Transaction Levy (E-Levy) was introduced by the New Patriotic Party (NPP) under the government of President Nana Akufo-Addo in the 2022 budget to widen the tax net and rope in potential taxpayers in the informal sector.
According to the government, the E-levy will help increase Ghana’s tax-to-GDP ratio from approximately 12.2% in 2020 to 20% by 2024. The introduction of the levy has since been met with resistance from opposition political parties and some Ghanaians.
But speaking to A1 Radio on Day Break Upper East, Mr. Abanga stated that, it is important for the government to pass the e- levy bill in order to provide the nation with the needed development.
According to the only governing New Patriotic Party Member of Parliament in the Upper East region, he had conducted extensive research into the matters so and upheaval surrounding the Levy. He said he had gone around the entire Binduri constituency to find out how constituents received the news concerning the E- levy bill and it had become apparent to him that with the Gh¢100 threshold, a great number of people will not be affected, a reason for the E-Levy to be passed.
Mr. Abanga, therefore, noted that the claim that the e-levy is targeting the less privileged cannot be true.
“The E- Levy policy is that, If you are making a transaction or if you are transferring money to someone and it is less than Gh¢100.00 in a day you wouldn’t pay 1.75 percent or 1.5 percent that suppose to be charged.
So when I was in my constituency touring I discussed with them, I asked them whether they thought that among us here, will we usually in a day transfer Gh¢100.00 to another person? I did that, and it was obviously most of our transactions are within [the threshold],” he said.
Mr. Abanga was quick to add that although a few business enterprises and people will be affected, including himself, it is not reason enough for the government to back down on its efforts to increase internally generated revenue.
A1radioonline.com|101.1MHZ|David Azure| Ghana|
