As part of the revision of the e-levy statute, the GHS 100 daily threshold intended to protect disadvantaged individuals will be eliminated.
This declaration was made by Finance Minister Ken Ofori-Atta during the 2023 budget reading in parliament on Thursday, November 24. He said that this review was part of a “seven-point strategy targeted at restoring macroeconomic stability and driving our economic transformation.”
The minister acknowledged that the tax established in the budget for 2022 “had not generated the anticipated funds.” The electronic levy was implemented to assist the government in generating domestic income.
Mr. Ofori-Atta also remarked that the government received many ideas for a review of the E-Levy “and is collaborating closely with all interested parties to assess the effect of the Levy.”
These might include the adjustment of the different exclusions, according to him.
“As a first step, the headline rate will be decreased to 1% of the transaction amount, and the daily barrier will be eliminated,” Mr. Ofori-Atta said.
After an original prediction of GHS 7 billion, the government lowered its estimates for revenue collection from the tax.
In July 2022, estimates were cut by a factor of 10 to 611 million GHS.
The fee was fiercely opposed by the Minority in Parliament and was generally disliked among Ghanaians.
Citinewsroom claimed that an Afro-Barometer study revealed that three-quarters of Ghanaians opposed of the e-levy, including 67 percent who “strongly disapproved” of it.
This is the second review of the tax, which was originally set at 1.75 percent before the government decreased it in response to objections.
In the end, the tax was introduced in May of 2022.
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