The minority in parliament has urged the government to seriously consider further lowering the e-levy rate to 0.5 percent and establishing a daily tax-free threshold of 300 cedis in order to gain their support.
Minority leader, Haruna Iddrisu, who made this appeal, noted that the minority caucus will vigorously advocate for the reduction in parliament.
Presenting the 2023 budget on Thursday, November 24, 2022, Finance Minister Ken Ofori-Atta announced that the government was reducing the e-levy rate
from 1.5 percent to 1 percent and removing the 100 cedis tax-free daily threshold.
That means any amount transferred is taxable. The Minority Leader, Haruna Iddrisu during the inaugural ceremony of the post Budget in Ho stated that such a review will worsen the hardship on the average Ghanaian.
Thus, he urged the government to reconsider the newly proposed rate and reduce it to a 0.5%“We will subject it to a further critical and thorough discussions
as a caucus but without going into the scenarios, as you look at your scenarios, consider for say of 0.5% at a threshold of ¢300 as compared to what you have admitted of 1%”.
Mr Haruna noted that his party had not yet made up its mind regarding the suggested increase of the VAT rate by 2.5 percent.
However, he cautioned that this can have a negative impact on businesses.
But according to Finance Minister Ken Ofori-Atta, the government’s inability to access the global market has made the measures crucial for raising domestic revenue.
He believes that these taxation policies are essential for saving Ghana’s economy from total collapse.
The Finance Minister has called on the MPs to rally their support for the measures suggested, so they can be passed on time. “It has become more urgent to
mobilise some domestic revenue as our access to the international market has been largely closed and our debt levels increased”,
Finance Minister, Ken Ofori- Atta had said on Thursday, November 24, during the 2023 budget presentation. The electronic transfer levy, popularly known as e-levy, was introduced in May 2022.
Ghana’s e-levy is a 1.5 per cent tax on the transfer amount of electronic transactions. The objective is to improve tax revenues by tapping into fast-growing digital financial services.
