E-Levy Passage: We’ve Done What Is Good For Ghana – Kyei-Mensah

E-Levy Passage: We’ve Done What Is Good For Ghana – Kyei-Mensah
Osei Kyei Mensah-Bonsu

 

 

 

The Majority Leader, Osei Kyei Mensah-Bonsu says the passage of the electronic transfer levy is in the best interest of the country and his side is happy to have championed it. He said the delay in passing the bill over the past three months has taken a severe toll on the country’s economy including the withdrawal of foreign

 

investments and a depreciation of the cedi. We have done what is good for the country. As a house we should position ourselves to monitor the proceeds, he said at a press conference on Tuesday. The Suame legislator added that, the effect of this [long process] on the economy has not been good. Over the past three

 

 

months, there was considerable uncertainty about our revenues, and Ghanaians, investors and Ghana Revenue Authority were worried, which explains why there was a lot of speculation in the system which also led to the downgrading of our economy and a downward spiral of the cedi which raised the cost of living. Parliament on

 

 

Tuesday passed the Electronic Transfer Levy in the absence of the Minority MPs, who had walked out before the Bill was considered at the second reading stage.The Minority had complained that it had been taken by surprise by the unexpected consideration of the levy as it was not listed in Parliament’s business

 

 

statement for this week. During a debate on the bill, the minority side lamented that the bill would worsen the plight of Ghanaians. But the Majority Leader said he is convinced that the passage of the E-levy will bring huge relief to Ghanaians. To the extent that our colleagues were not rancorous, and no such infractions came, we

 

 

should be thankful for them that we had a smooth conduct of business in the House, and we are moving the agenda of national development forward, he said. The levy, which was amended from 1.75 percent to 1.5 percent today, Tuesday, March 29, 2022, will be a tax on electronic transactions, which includes mobile-money

 

 

payments. The charge will also apply to all thr electronic transactions that are more than GH¢100 cedis on a daily basis. Critics of the proposal have warned that this new levy will negatively impact the Fintech space, as well as hurt low-income people and those outside the formal banking sector. The levy has been the source of tension in Parliament since it was introduced in 2022

 

 

budget. The tensions culminated in a scuffle between lawmakers in the Parliament in the December 2021.The government has, however, argued the levy would widen the tax net and that could raise an extra GH¢6.9 billion in 2022. There are also concerns that the government may securitise proceeds from the e-levy to raise extra revenue.