Chief Finance Officer of Valley View University, Dr. Williams Kwasi Peprah has called on government to properly clarify the newly introduced Electronic Transaction Levy or the E-Levy.
The Finance Minister Ken Ofori-Atta in delivering the 2022 Budget Statement and Economic Policy of government to parliament on Wednesday said the Electronic Transaction Levy or E-Levy will help to increase tax revenues for the country. He added that the proceeds from the levy will be used to support entrepreneurship, digitization and road sector development.
Commenting on the new tax after the budget presentation, Dr. Peprah observed that the Finance Minister’s announcement left out very important information needed by the public in order to comply with the levy.
The Finance Officer explained that the Minister failed to indicate whether the levy will be charged on the actual amount of the transaction or the fees and charges on the transaction.
He therefore calling on government to clarify the base for which the 1.75 percent levy will be charged on.
“On the E-levy, there is something that government must come again and give clarification because the key word used here is transactions. Does it mean that if I’m transferring 100,000 cedis, I will pay the 1.75 on the 100,000 or its on the fees. What amount or base are you going to tax the 1.75? Is it on the fees or the actual transaction so government must come through GRA to clarify,” the Chief Finance Officer of Valley View University observed.
He continued that if the levy is charged on the actual amount of transaction, it means then that government is going to mobilize a very significant revenue for development.
He said, “if its on transaction then government is going to be very rich because in economics, there is something we call M1, which is all funds in circulation, whether electronic, coins, fiat currency government is going to get 1.75 percent on it if there is any movement.”