The Chief Executive Officer of the Ghana Chamber of Telecommunications, Ken Ashigbey, has described the introduction of the 1.75% levy on electronic financial transactions as ill-timed.
According to Mr Ashigbey, the chamber was not consulted by the government on the proposal before the announcement was made in Parliament on Wednesday, November 17, 2021.
“When we got this information, it was surprising because there had not been any prior engagement to discuss this e-levy. The timing of taxing this nascent industry is not now, and we needed to let it [the industry] grow, defeat cash before we attempt any form of taxation,” he said.
The Minister for Finance, Ken Ofori-Atta, during the reading of the 2022 budget before Parliament on Wednesday said the government is introducing a 1.75% tax on electronic payments as part of efforts to raise revenue to support government’s development agenda including maintenance of roads.
The transactions to be impacted by the tax include Mobile Money transactions, inward remittances and ATM withdrawals.
The announcement has been met with mixed reactions, with many Ghanaians kicking against it entirely, while others have asked that it be reduced.