E-Levy: Digital Economy The Biggest In Ghana But Undertaxed - Akufo-Addo Justifies Tax

E-Levy: Digital Economy The Biggest In Ghana But Undertaxed - Akufo-Addo Justifies Tax

  • President Nana Akufo-Addo has justified the controversial E-Levy tax that was recently passed by Parliament
  • According to the president, the new tax is important to capture the vast but untaxed digital economy
  • He said generally, Ghanaians are taxed less on the continent because the average tax to GDP ratio in West Africa was 18% but Ghana's tax to GDP was 13%

PAY ATTENTION: Click “See First” under the “Following” tab to see YEN.com.gh News on your News Feed!

President Nana Akufo-Addo has justified the controversial E-Levy, stating that although the digital economy was emerging as the biggest sector of the economy, it was undertaxed.

The President told the BBC on Monday, April 4, 2022, that there are experts in his government who back the 1.5% tax to be charged on mobile money and other electronic transactions.

Akufo-Addo E-Levy
President Akufo-Addo said Ghana's tax to GDP ratio was the lowest in West Africa. Source: Instagram/@fillaboyzdotcome
Source: Instagram

He suggested that while other economic experts speaking against the tax have a right to state their opinion, he is more inclined to listen to the experts in his government.

Read also

Nine things Akufo-Addo told the BBC about E-Levy and economy in yesterday's interview

"The digital economy is emerging [as] the biggest economy in the country and for a long period it's not had any taxation at all, and so it is important that they also come into the tax net," he told BBC's Peter Okwoche.

Download YEN's news app on Google Play now and stay up-to-date with all major Ghana news

He said it was essential to get a lot more transactions into Ghana's tax net because the country has the lowest tax to GDP ratios of any country with an equivalent economy.

He said while the average tax-to-GDP of the sub-region was 18%, Ghana was doing 13%.

Ghana’s Parliament passed the controversial 1.5% E-levy tax on Tuesday, March 29, 2022.

The new tax will affect five central transactions, according to the Finance Minister, Ken Ofori-Atta.

The new levy will affect five principal transactions, key among them mobile money transactions.

Read also

E-Levy implementation starts in May after Akufo-Addo's swift assent to a controversial bill

Also, transfers from bank accounts to mobile money accounts will be taxed.

Transfers from mobile money accounts to bank accounts and bank transfers on a digital platform or application will also be taxed.

E-Levy: Nine Reliefs Minority Is Seeking From Supreme Court Over ‘Illegal’ Passage Of Bill

The Minority in Parliament has filed a suit at the Supreme Court seeking relief for nine faults they believe have been triggered by the passage of the E-Levy bill yesterday.

Minority Leader and MP for Tamale South, Haruna Iddrisu; North Tongu MP, Samuel Okudzeto Ablakwa; and Bawku MP, Mahama Ayariga, have dragged the Attorney General to the apex court, citing breaches in the passage of the bill.

The three MPs represent all 137 opposition MPs at the apex court to argue that the constitutionally mandated number of MPs did not pass the controversial bill.

Source: YEN.com.gh

Online view pixel