Parliament approves reduction of E-levy rate by 1 percent following the amendment of the Electronic Transaction Levy (E-levy) Act on Wednesday, December 21, 2022.
The proposal to reduce the e-levy rate from 1.5 percent to 1 percent was made public in the 2023 budget by Finance Minister Ken Ofori-Atta.
“……….review the E-Levy Act and more specifically, reduce the headline rate from 1.5% to one percent (1%) of the transaction value as well as the removal of the daily threshold,” Ofori-Atta read from the budget statement.
Ranking Member on Finance Committee, Dr. Cassiel Ato Forson had something to say on the floor of the House.
“We in the Minority had indicated strongly that we do not believe that the GH₵100 threshold must be removed because of a number of reasons.
“They have listened and in presenting the e-levy bill clearly they have decided to remove what they had intended to exclude. Mr. Speaker, it is important for us to commend them for at a minimum they have listened.”
In a another development related to parliament approving the reduction of the E-levy rate, the Minority could not muster the necessary support to win the voting called, despite fierce resistance to the 2.5 percent increase in the Value Added Tax (VAT) as stated in the 2023 budget statement.
With 136 votes to the Minority’s 135, the Majority prevailed.
“I do not believe that this is the time to introduce a VAT, a tax that seems to take away additional disposable income,” Ranking Member on Finance Committee, Dr. Cassiel Ato Forson warned.
