E-levy will worsen financial conditions of Ghanaians – Dr. Duffuor

Dr. Kwabena Duffuor, a former Finance Minister, has said the proposed electronic transactions levy (E-levy) in the 2022 budget will worsen the financial conditions for the already struggling Ghanaians.

Dr Kwabena Duffuor

He described as problematic the E-levy that could derail the gains made in enhancing financial inclusion.

The 1.75% E-levy which was announced by the Finance Minister during the budget presentation in parliament is expected to tax all electronic transactions including MoMo, bank transfers, merchant payments, and inward remittances.

The Minority in Parliament has opposed the levy, citing it as one of the main reasons for rejecting the entire budget.

President Nana Addo Dankwa Akufo-Addo has indicated that the implementation of the controversial 1.75% levy on all electronic transactions will provide more jobs and opportunities for the youth of Ghana.

He emphasised that with the implementation of the levy adding that the government will generate revenue to build more roads and also reduce the country's dependence on debt.

But Dr. Duffuor disagreed and said the policy will discourage people from using electronic transactions in Ghana.

In a Twitter post, he said "For a government that wants to leverage on digitalization the e-levy contradicts the facilitation of a digital economy and worsens financial conditions for already struggling Ghanaians. Focusing on the extractive industry yields more revenue without the burden the e-levy creates."

The government is projecting to get about GH¢6.9 billion from the proposed E-levy by end of 2022.

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