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E-Levy is an innovative way of taxation – John Buadu

The Electronic levy which has created heated arguments across the country in recent times, has been described as an innovative way of taxing citizens for developmental purposes.

It is expected to transform the traditional sources of public finances, moving the country away from the price inflation created by foci levies and the risk of an excessive debt burden.

This is according to the General secretary of the governing New Patriotic Party (NPP) John Buadu, who made this known during a press conference in Tamale on Tuesday 7,December 2021.

John Buadu sides with the finance minister when he noted that proceeds from the E-levy will support employment creation, especially among millions of trained and partially trained youth, reduction of the country’s debt profile and improvements in infrastructure, including roads and digital infrastructure.

He added further that the E-Levy will broaden the tax base and ensure more people contribute to the national tax purse.

it is abundantly clear that Parliament through its committee system has all the opportunity to make amendments and suggestions as provided by the rules of procedure in Parliament.

This Mr. Buadu has thus urged the Minority Caucus to demonstrate to Ghanaians a constructive approach to resolving any outstanding issues, including the details of collection and implementation of the e levy.

Ghana’s finance minister Ken Ofori-Atta has announced that the government intends to introduce an electronic transaction levy (e-levy) in the 2022 budget. He said this was to “widen the tax net and rope in the informal sector”.

The proposed levy, which will come into effect on 1 February 2022, is a charge of 1.75% of the value of electronic transactions.

It covers mobile money payments, bank transfers, merchant payments, and inward remittances.

The originator of the transactions will bear the charge except for inward remittances, which will be borne by the recipient. There is an exemption for transactions up to GH¢100 ($16) per day.

According to the general secretary Indirect taxes are tax on tax and the minority are only trying to play the propaganda on this issue.

We’re hopeful the minority will come to our level so far as issues of the e-levy is concerned. Now that they’ve moved from  advocating for 0% e-levy in the past,  to 1% e-levy, is a step in the right direction, He added.

Source:Fiilafmonline/ShawanaYussif

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