Ghana passes 1.5% E-levy bill to bring its economy to normalcy following COVID-19 Shocks

Ghana passes 1.5% E-levy bill to bring its economy to normalcy following COVID-19 Shocks 

Parliament has passed the Electronic Transfer Levy  (E-levy) in the absence of the Minority Members of Parliament (MPs), who had walked out before the Bill was considered at the second reading stage.

The Minority had complained that it had been taken by surprise by the unexpected consideration of the levy.

The E-levy was not listed in Parliament’s business statement for the week.

The Minority MPs later walked out of Parliament before the second reading of the Bill after debating it.

All the proposed amendments standing in the name of some Minority MPs were withdrawn as none of them was present to move those amendments in their name.

The Speaker of Parliament, Alban Bagbin, said he was surprised by the Minority walkout but indicated that it would not affect the course of proceedings.

The levy, which was amended from 1.75 percent to 1.5 percent on Tuesday, March 29, 2022, would be a tax on electronic transactions, which includes mobile-money payments.

The charge would apply to electronic transactions that were more than GH¢100 on a daily basis.

Critics of the proposal have warned that the new levy would negatively impact the Fintech space, as well as hurt low-income people and those outside the formal banking sector.

The levy has been the source of tension in Parliament since it was introduced in the 2022 budget.

The tensions culminated in a scuffle between lawmakers in Parliament in December 2021.

The government has, however, argued the levy would widen the tax net and that could raise an extra GH¢6.9 billion in 2022.

There were also concerns that the government might increase proceeds from the e-levy to raise extra revenue.


Joyceline Natally Cudjoe

An Entertainment Columnist, Content Writer, Blogger, Novelist, Poet, and a Publicist. For business or story tip off, contact me on +233 24 646 6866 or email: [email protected]

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