Finance Minister, Ken Ofori-Atta presenting the 2022 budget of the government in Parliament announced that motorists who ply public roads nationwide will no longer be required to pay road tolls after the budget has been approved.
“Government has abolished all tolls on public roads and bridges. This takes effect immediately the Budget is approved,” Ken Ofori-Atta said.
“After considerable deliberations, the government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the ‘Electronic Transaction Levy or E-Levy’.”
He explained that the new E-levy will be a 1.75 percent charge on all electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances to be borne by the sender except inward remittances, which will be borne by the recipient.
This will, however, not affect transactions that add up to GH¢100 pr less per day.
“A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others.”
This new levy is scheduled to start Saturday, January 1, 2022.
In 2020, the total value of transactions was estimated to be over GH¢500 million with mobile money subscribers and users growing by 16 percent in 2019.
According to a Bank of Ghana report, Ghana saw an increase of over 120 percent in the value of digital transactions between February 2020 and February 2021 compared to 44 percent for the period February 2019 to February 2020 due to the convenience they offer.
This was definitely heightened by the advent of Covid-19, especially during the lockdown.
Deputy National Organizer of the largest opposition National Democratic Congress (NDC), Chief Hamilton Biney,
has since questioned the ‘Electronic Transaction Levy or E-Levy’.
Read below a post he made on his facebook wall Monday morning:
Mr President Nana Addo Dankwa Akufo-Addo you told the people of Ghana to vote for you so we can move from taxation to production! Why are you introducing momo tax, E tax plus the removal of your 50% benchmark on some imports? Is that production? The hardship on Ghanaians under your watch after the honey coated promises is becoming too much Sir, please save Ghanaians by honouring your own promises. Remember you told us taxation was a lazy man’s approach! respectfully sir politics is not about deception, Ghanaians deserve better.
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