Sign in
Download Opera News App

News Politics




Financial policy

Split The E-levy Between Telcos and Consumers To End Stalemate

The government is being urged to charge one (1) percent of the proposed 1.75 percent electronic transaction tax on the telecommunications companies, which are making good business and the remaining 0.75 percent on consumers to end the stalemate that is holding up the 2022 budget.

Dr. John Kwakye, Director of Research, Institute of Economic Affairs (IEA), says splitting the tax between the booming telecommunication companies and the consumers makes a lot of sense – lessen the burden on consumers and this is something the opponents of the tax are likely to accept.

This can be the pathway to a compromise, to allow the passage of the e-levy bill, keep the tax at the level that the government has proposed and the projected revenue.

The IEA Director of Research said some sectors of the economy, particularly the telecommunications have capitalized on the flu-like pandemic Covid-19 and making good money and therefore it was only fair to make them to pay back some of the huge profits they were making to the state.

Ken Ofori-Atta, the Finance Minister, says the e-levy represents a good opportunity to bring more people into the tax net to boost domestic revenue mobilization.

“Let me emphasize that the e-levy represents our greatest opportunity to in the medium-term widen the tax base and meet the tax to Gross Domestic Product (GDP) ratio of 20 percent as pertains among our peers.”

A renowned economist, Kwame Pianim, has however kicked against the e-levy and he is calling for the government to shelve it.

He is warning that the proposed implementation of 1.75 percent tax on electronic transactions beyond Ghs100 a day, could potentially undermine the tremendous progress achieved by way of financial inclusion of those who were not saving their monies with the banks.

“The government has to take a step back from the brink, listen creatively to the pain of our people and focus on providing a caring administration and preserving national cohesion and keeping the economy on an even keel in these stormy weathers.”

He adds that the people were already finding the going tough, struggling to survive and therefore the government should rather focus on “expenditure cuts and husbanding our scarce resources”.

Content created and supplied by: KyeretwienanaOseiBonsu (via Opera News )

IEA Institute of Economic Affairs John Kwakye Ken Ofori-Atta Telcos


Load app to read more comments