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Haruna Iddrisu, the Minority Leader, has indicated that the NDC Caucus in Parliament will demand a proper vote on the electronic levy [E-levy] proposal which was announced by the Finance Minister in the 2022 budget statement to Parliament.

According to him, his side is willing to vote against the revenue and some other revenue measures which were part of the budget.

The Tamale MP explained on Joy News’ ‘PM Express’ programme that aired on Monday, November 22, that, “We will reject it outright. There’s no way the Minority will stand with the government on the introduction of the e-levy. It’s not just opportunistic but an oppressive tax regime but also lazy. It will derail the progress we have made as a country on the digital economy. We are united and collectively, we will subject it to a vote and be counted standing in opposition.”

He noted that the government could have used other means to raise sustainable revenue without resorting to “lazy” tax measures.

He suggested that, one of the ways in which government can raise sustainable revenue is by cutting down on its “profligate” expenditure to raise revenue to build the country.

“I just think that it’s a no no for the country at this material time. You tax when you don’t discipline your opulent and profligate expenditure, that is not encouraging. You cannot be asking Ghanaians to tighten their belts whilst you lose your excessive and unexplained expenditure. Take the rental of presidential jets for instance, and you’d hear arguments that the president must bath in the air and you hear the amount of money that is spent, colossal, on travels,” Haruna Iddrisu added.

1.75% levy on electronic transactions

Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.

Fees and charges of government services have also been increased by 15%.

The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.

"As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.

"To safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day, which is approximately ¢3000 per month, will be exempt from this levy,” Ofori-Atta revealed.