Finance Minister, Ken Ofori-Atta says the introduction of the E-Levy is not regressive as being speculated in some quarters
The Minister of Finance Ken Ofori-Atta has dismissed assertions suggesting the introduction of the E-Levy in the 2022 Budget is regressive.
Johnson Asiedu Nketiah, the general secretary of the opposition National Democratic Congress (NDC), had earlier lashed out at the government for replacing old taxes with new ones in the 2022 Budget, describing the action as regressive.
Reacting to the comments at a news conference on Monday ( 6 December ) Ken Ofori-Atta described the E-Levy as strategic in widening the tax net.
Ofori-Atta said, “Permit me to emphasize that the E-Levy represents our greatest opportunity to, in the medium term, broaden the tax base and meet the tax-to-GDP ratio of 20% as pertains among our peers. To lessen the impact of the E-Levy on consumers and subscribers, especially the more vulnerable; we shall work with all the stakeholders including the Telco’s to ensure that the all-inclusive cost is reduced by 0.25 percentage point.”
“We shall also ensure that administration measures will be taken to avoid attempts at evading the E-Levy taxes. 22. The proposed E-Levy is largely progressive. We have intentionally, set the GHC100 threshold (covering about 40% of MoMo users), mindful of the need to exempt vulnerable groups, while continuing to encourage the development of our nascent digital economy.”
“This, to a very large extent, will ensure that a significant number of Ghanaians, low-income earners in the informal sector, whose daily transactions fall below the GHC100 threshold are totally exempt from the payment of the E-Levy,” he said.