The Ghana Mobile Money Association has petitioned Parliament’s Minority Caucus to guarantee that the new Electronic Transaction Levy (E-Levy) be rejected when it is introduced.
According to the organization, their examination of the E-levy after its inclusion in the 2022 budget reveals that its implementation would be difficult not only for Ghanaians and agents, but will also have an impact on the economy.
The General Secretary of the Association, Evans Otumfour, presented the petition to the Minority, citing among other things that acceptance of the charge would damage the country’s cashless system, result in job losses, and have an impact on the government’s digitalisation effort.
“Yes mobile money has become the major driver of both formal and informal sector, everybody is now leveraging on whatever economic activity to transact using the mobile money platform. So after our assessment, we have realised that there are about 12, challenges should the government continue to pursue the e-levy in its current state or form,” he said.
Mr. Otumfour noted that, given the issues raised in the petition, the E-levy bill in its existing form “should be scrapped.”
He added that “we are agents and we play major roles within the industry so when we realise that our profit margins are going to be affected, our lives are also under threat then we will be left with no alternative than to consider pulling back our investment.”
The Minority has launched a strong defense against the inclusion of the 1.75 percent charge in the 2022 budget, alleging that it would further exacerbate the citizenry’s fiscal burden.
However, the charge, according to Finance Minister Ken Ofori-Atta, would raise the country’s tax-to-GDP ratio from 13 percent to a goal of 16 percent or higher.
The remainder of the budget has been passed, with the exception of the E-Levy, which the Minority has vowed to oppose forcefully.
Meanwhile, the Mobile Money Association says it is in the government’s best interests to thoroughly examine the charge and its effect before it is passed and implemented.
Mr. Otumfour said that “a more thorough stakeholder consultation must take place so that at the end of the day there should be a better module that would not serve as a danger for the industry.”
He added that “we are of the view that if government should consider the following proposals it will be in the best interest for the country and keep us on the journey.”
Muntaka Mubarak, Minority Chief Whip, said that the government is planning to meet with the caucus about the levy and promised the group that their concerns will be conveyed to the government.
Read Also: Three students stabbed in a week; security beefed up at Ejisu Snr High Technical
SOURCE: myjoyonline
