The Institute of Economic Affairs (IEA) has called for a downward review of government’s tax measure – Electronic Transfer Levy (E-Levy).
According to the Director of Research at IEA, Dr John Kwakye, the current 1.50 percent charge, imposed on all electronic transfers above GH¢100 in a day, should be reduced to 0.50 percent.
He explained that the move will rope in everyone including tax evaders and improve government’s revenue mobilisation efforts.
Speaking at a press conference in Accra, Dr Kwakye said, “we suggest reducing the rate from 1.50% to 0.50%. By doing so, it may prevent people from trying to evade the levy, and government may in the end rake in more than under the current 1.50% rate.”
It would be recalled that government in March this year imposed a 1.5 percent charge on all electronic transfers above GH¢100 per day.
The tax policy was a move by the goverment to widen the country’s tax net but has since courted controversy and widespread backlash since its announcement and subsequent implementation.
The charging entities for the E-Levy are telecommunications companies, commercial banks, special deposit-taking institutions and Payment Service Providers (PSPs).
Government hoped to rake in about GH¢7 billion from the collection of the 1.5 percent levy on mobile money and other electronic transactions, but the figure was revised downwards to about GH¢4 billion recently.
Meanwhile, the Ghana Revenue Authority (GRA) in October this year noted that a total of GH¢328 million in revenue has been accrued from the E-Levy so far.
Source: ghanaweb
