27th November 2022 9:42:26 AM
3 mins readThe review of the Electronic Transaction Levy (E-Levy) was received with disappointment by some Cape Coast residents in the Central Region, and they renewed their requests for the government to rescind the policy entirely.
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They bemoaned that the already shaky economy would not be improved by the proposed revision of the revenue collection policy.
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The E-Levy was implemented by the government in 2022 as part of efforts to boost revenue. It is a 1.5 percent deduction from a set list of electronic transactions with a daily threshold of 100 Cedis.
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However, the fiscal measure has fallen short of expectations because it is bringing in far less money than anticipated.
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In view of this, Finance Minister Ken Ofori-Atta, while presenting the 2023 budget in Parliament on Thursday, November 24, announced a reduction in the rate of the policy from 1.5 percent to one percent without the threshold.
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The review, among other fiscal and austerity measures, is targeted at salvaging the country’s southbound economy.
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This means that subject to approval by Parliament, Ghanaians will pay E-Levy of one percent on all affected forms of transactions despite the amount involved.
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Speaking to some citizens on the development, they expressed disappointment at the policy and questioned the sensitivity of government to their plights.
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Madam Abigail Mensah, a trader at the Kotokuraba Market, said she did not want the policy in any form and that it must be scrapped off immediately.
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“Already, we can barely afford to feed ourselves and our families and the best government can do is to push us off the cliff with taxes?” she queried with a visibly livid expression.
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Comparing the E-levy in its current form to the proposed review, Madam Lordina Ackah, also a trader, preferred it to be left untouched because the percentage removed was an insult.
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In an interesting twist, another market woman, Madam Gertrude Dadzie who also called for the levy to be scrapped, suggesting that the government found better means of easing the plight of Ghanaians.
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A taxi driver, Mr Francis Awotwe, called on the government to cancel the E-Levy and bring back the tollbooths.
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Lamenting the hardship in the economy, he said he made nothing from his taxi business because every money he made went into buying fuel.
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“I buy a gallon of petrol for more than 80 Cedis and I do not make up to 300 Cedis in a day. How much do I give my car owner and how much do I take home to cater for my family?” he retorted.
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“In spite of this, the government still wants to take away the small money I send to my poor old mother in the village.”
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Meanwhile, some mobile money vendors have said the development would collapse their businesses even further.
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Mr Nii Armah Tagoe indicated to the Ghana News Agency that his average daily profit of 80 Cedis had dropped to 20 Cedis since the introduction of the levy.
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He said even though transactions conducted were not affected by E-Levy, customers’ activities had dropped significantly due to the lack of proper education on the policy.
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“We have not made any profit since the E-Levy came and the trend now is that many people no more do withdrawals and deposits than money transfer.
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“The review is worse, and it is going to kill us more,” he added.
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Another vendor, Mr Ahmed Yussif, said he did not expect any significant effect on his business, adding that the impact, if any, would be felt after a month.
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