The introduction of the Electronic Transaction Levy (e-transaction levy) of 1.75 percent on the value of the digital transaction by the government in the 2022 budget statement and economic policy of the government would generate some GH₵ 6.9 billion next year, Deputy Finance Minister, Dr. John Kumah said here Monday.
According to him, the revenue to be generated from the tax would be used by the government to pay contractors across the country.
He explained that the government generated GH₵ 78 million annually from the abolished road tolls which was insufficient to fund road projects.
“The e-levy would generate GH₵ 6.9 in 2022 and that gives enough space to the government to pay contractors when they raise their certificates. The e-levy will help the government to achieve its target,” he said during a post-budget forum organized by the Finance Ministry for members of the Institute of Financial and Economic Journalists (IFEJ) and the Parliamentary Press Corps in the national capital, Accra.
The government in its 2022 budget statement and economic policy presented to Parliament on Wednesday by Finance Minister Ken Ofori-Atta imposed an electronic transaction levy (e-transaction levy) of 1.75 percent on the value of the digital transaction and exempt daily transactions of a cumulative value of GH₵ 100 or less, per person with the recommended effective date of implementation scheduled for January 1st, 2022.
Annually, up to 0.25 percentage points of the 1.5 percent e-transaction levy (i.e. 16.7 percent of the yield from the levy), according to the budget should be used to support road infrastructure development and 10 percent of the 0.25 percentage points (i.e. 1.67 percent of the yield from the levy) should be dedicated for improvement in public transportation including the purchase of buses.
The introduction of the e-levy by the government in its latest budget statement has generated several discussions among the populace.
While a cross-section of the public believes it is an innovative way of getting several people who hitherto were outside the tax bracket to pay taxes to shore up the government’s domestic tax mobilization, others also believe it would defeat the government’s own agenda of digitalizing the economy.
Meanwhile, Minority Leader, Haruna Iddrisu has served notice the National Democratic Congress (NDC) Caucus in Parliament would not support the e-levy in the state as has been introduced by the government.