Government should introduce e-tax in small amounts – Abu Sakara

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A former presidential candidate, Foster Abu Sakara, has sided with the government’s proposal to introduce the electronic transaction tax (E-levy).

According to him, fiscal policy is a prudent solution to the country’s current financial difficulties.

However, he felt that the necessary structures must be put in place before such a policy is implemented.

speaking on Upstream of JoyNewsMr. Sakara says Ghanaians will not resist a well-planned implementation system.

“If I was the one introducing E-levy, what we would do first is get digital payment systems working across all departments to begin with. When you have that transaction volume, you start introducing electronic direct debit in very small amounts, like 0.5%, then go to 0.7%, then 1%, people will go for it.

“But if you see a really big hole in our books now and you try to cut and paste everything at once, of course you’ll have a lot of resistance,” he told Raymond Acquah.

Finance Minister Ken Ofori-Atta, during the presentation of the 2022 budget on Wednesday November 17, announced that the government intended to introduce the E-levy.

The levy, he revealed, is introduced to “widen the tax net and the rope in the informal sector”. This followed an earlier announcement that the government intended to stop the collection of road tolls.

The proposed levy, which was to come into effect in January 2022, levies 1.75% on the value of electronic transactions. It covers mobile money payments, bank transfers, merchant payments and inbound remittances.

There is an exemption for transactions up to 100¢ per day.

Explaining the government’s decision, the Minister of Finance revealed that total digital transactions for 2020 were estimated at over GH¢500 billion (approximately $81 billion), up from ¢78 billion (US$12.5 billion). ) in 2016.

Hence the need to widen the tax net to include the informal sector.

Although the government has argued that it is an innovative way to generate revenue, dozens of citizens and stakeholders have expressed varying sentiments on its desirability, and many of them have firmly stuck to it. opposites.

Even though others have argued in favor of the tax, part of the population thinks that the 1.75% electronic tax is an insensitive tax policy that will aggravate the already existing difficulties in the country.

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