The Financial Opponents League has reiterated its area that the E-levy proposal within the 2022 budget commentary is unfair expand within the tax burden of life like to low wage earners at our press conference on 22nd of November 2021.
The community said the proposal smacks of insensitivity on the fragment of politicians.
“The complicity of the NPP and NDC has performed and continues to play a predominant role in oppressing Ghanaians. In recount of auditing the ‘strange and opaque contracts’ which have prompted ‘the abysmal financial mess and disaster the country has been in over time’ both parties while in authorities have reached for extra taxes that penalise subsisting Africans on this unbalanced and unsustainable fiscal regime.
“Assorted recent events are definite evidence of this hegemony; that a parliament with a just distribution of 137-137 used to be ready to dash this budget buttresses our conviction that neither fetch collectively exists to serve the interests of the citize ns of Ghana.
“The Financial Opponents League condemned the Momo Tax as an unfair expand within the tax burden of life like to low wage earners at our press conference on 22nd of November 2021.
“We reiterate that the introduction of the Momo Tax demonstrates the insensitivity of the political establishment to the plight of the frequent Ghanaian of their wrestle for decent residing standards and sustainable livelihoods,” a commentary said.
Meanwhile, Finance Minister Ken Ofori Atta has said while answering a demand at a press conference in Accra on Wednesday, January 19 on what the authorities’s Plan B is for the economy and income technology, that the opinion is for the authorities to live centered and fetch the E-levy proposal through to make certain the domestic income mobilisation is sturdy.
He knowledgeable the pressmen that there can’t be absolute agreement on authorities’s insurance policies.
“There is no blueprint we can have absolute agreement.
“We’re going up by 40 per cent as regards to income mobilization and then expenditure is moreover going up by 25 per cent. Now we have constantly been very factual about being ready to to diminish down on expenditure precisely when we don’t meet our target.
“With this fresh ruin of day of GRA exceeding targets, we ask that to proceed. With the fresh national ID machine we’re now 15.5 million folks are going to be on their books.
“That is what affords me the pleasure into the longer term because of the when I learn the Fitch Dispute, you is liable to be doubting that we can make our revenues , I’m assured that we can. They’re worried that we cant come to the worldwide market , we’re asserting its magnificent, we have our SDRs that will suffice for the predominant half and then we can figure out one more methodology of getting the
“So opinion B is to preserve centered and make certain that we fetch our E-levy through , make certain that our domestic income mobilization is string and that be, we compose no longer must traipse the market.”
The E-levy proposal within the 2022 budget commentary has sharply divided parliament. The opposition MPs have rejected the proposal.
The Minority Leader Haruna Iddrisu said the policy proposal is a disincentive to the growth of digital economy.
To that discontinue, he said, the Minority would no longer enhance it.
Speaking at a publish budget workshop in Ho on Saturday November 20, he said “Mr Speaker, understandably, we gaze that the Minister of Finance seeks to introduce some measures including the now popularly declared e-levy or digital levy as some have reasonably named it.
“Mr Speaker, our anxiousness is whether or no longer or no longer the e-levy itself is just not any longer and will need to peaceful no longer be a disincentive to the growth of digital economy in our country . We’re convinced that the e-levy might perhaps perhaps as neatly even be a disincentive to investment and a disincentive to non-public sector vogue in our country. We within the minority might perhaps perhaps no longer and will need to peaceful no longer enhance authorities with the introduction of that particular e-levy . We’re unable to construct national consensus on that particular topic.”
Mr Ofori-Atta had announced this levy to be charged by authorities in 2022 on all electronic transactions to widen the tax rep and wire within the informal sector.
“It is changing into definite there exists mountainous capability to expand tax revenues by bringing into the tax bracket, transactions that will be easiest defined as being undertaken within the ‘informal economy’,” Mr Ofori-Atta noticed on Wednesday, November 17 as he presented the 2022 budget commentary in Parliament.
“After appreciable deliberations, authorities has determined to recount a levy on all electronic transactions to widen the tax rep and wire within the informal sector. This shall be is named the ‘Electronic Transaction Levy or E-Levy’.”
He defined that the fresh E-levy will be a 1.75 per cent price on all electronic transactions covering cell cash funds, financial institution transfers, carrier provider funds and inward remittances to be borne by the sender except inward remittances, which is ready to be borne by the recipient.
This might perhaps perhaps perhaps, however, no longer impact transactions that add as much as GH¢100 pr much less per day.
“A half of the proceeds from the E-Levy will be dilapidated to enhance entrepreneurship, youth employment, cyber security, digital and avenue infrastructure amongst others.”
This fresh levy is scheduled to originate up Saturday, January 1, 2022.
In 2020, total value of transactions used to be estimated to be over GH¢500 million with cell cash subscribers and customers rising by 16 p.c in 2019.
Per a Financial institution of Ghana fable, Ghana noticed an expand of over 120 p.c within the value of digital transactions between February 2020 and February 2021 when compared to 44 p.c for the duration February 2019 to February 2020 because of the the comfort they offer.
This used to be positively heightened by the appearance of Covid-19 in particular all around the lockdown.
Credit rating: 3News