The New Patriotic Party Member of Parliament (MP) for Akyem Oda constituency is making a strong case for the passage of the 1.75% Electronic Transaction Tax, popularly known as E-levy.
Alexander Akwasi Acquah argued that the introduction of E-levy is a “homegrown” solution aimed at resuscitating Ghana’s economy ravaged by the COVID-19 pandemic.
His comment follows stiff opposition, especially from the Minority in Parliament backed by the National Democratic Congress who maintains that implementation of the E-levy will further exacerbate the plight of Ghanaians.
Though the government has reduced the rate from 1.75 to 1.5 to be charged on transactions on GH¢150 mobile money (MoMo) transaction, the Minority still insists it should be scrapped.
Some experts want the government to move the transaction threshold from GH¢150 to GH¢300 to ensure the poor majority who transact GH¢100 MoMo a day won’t be affected.
Reacting to this on Adom FM, Mr Acquah said E-levy is sensitive to the poor.
He explained that “if you are sending up to a GH¢100 a day, cumulatively you can send up to GH¢3,000 a month, that is all going to be tax-free.” However, the Akyem Oda MP stated that “if you have more than a GH¢100 to send a day or spend it on lunch at the ‘chop bar’ then ‘you are not poor’.”
Mr Acquah said the challenges with Ghana’s economy are surmountable with the introduction of E-levy.
“All of us need to sacrifice to build our nation. E-levy is the solution and we must all contribute,” he added.