Tech n' Biz

GRA Commissioner Advocates for Sustaining E-Levy to Support Government Initiatives

Dr. Addae Emphasizes Role of E-Levy in Supporting Government Projects.

Dr. Addae expressed his views on the matter during the sidelines of the opening of a two-day conference titled “Taxing Mobile Money-Lessons and Ways Forward.” The conference was organized by the International Centre for Tax and Development (ICTD) in collaboration with the GRA.

He clarified that the funds generated from the e-levy played a crucial role in supporting government initiatives and projects. Dr. Addae stated, “There are talks that the tax would be canceled in the near future, but we are pleading that it’s better we sustain the current generation value raised to cushion the economy. Otherwise, we would be depending too much on loans.”

“The idea for E-levy is not how to introduce new tax types but to deepen tax revenue generation in a way that does not affect the already existing businesses that are paying taxes. The tax has been very unpopular as the populace does not see the tax to be a good source, but with education and better deployment of technology, we are seeing progress.”

Enacted in May 2022, the E-levy imposes a 1% tax on electronic financial transactions exceeding GH¢100 daily, encompassing activities like mobile money payments and bank transfers. Originally proposed in the 2021 budget, its intended purpose was to broaden the tax base and generate extra funds for developmental initiatives.

Nevertheless, the introduction of the E-levy was met with substantial criticism from the public, entrepreneurs, and various stakeholders due to apprehensions about its potential adverse effects on digital and mobile money transactions, as well as concerns about its impact on the economically disadvantaged.