- March 31, 2022
- Posted by: Amos Ekow Coffie
- Category: Economics
Director of the Institute of Statistical, Social and Economic Research (ISSER), Prof. Peter Quartey has called for a reduction in the 1.5% rate charged for e-levy.
According to the Professor, the rate as it stands, will deter a lot of consumers from patronising e-transaction services.
“If you’re going to tax, you ought to be very careful with the rate at which you tax since there are other options and as for me, this is why we recommended that a rate below 1% is something that most consumers will cope with, but as the rate increases, be rest assured that people will find alternatives and you may not be able to realise the revenue earmarked,” he said.
He, thus, has entreated the government to reconsider the 1.5% rate.
He nonetheless highlighted some benefits of the levy, stressing that “having passed the e-levy will give some sort of assurance that revenue gap will be plugged in one way or the other, perhaps not fully, but at least there’s some revenue that will be realised from this.”
Parliament on Tuesday, March 29, 2022, approved the controversial Electronic Transactions (E-Levy) Bill.
This decision was reached after the Consideration Stage was completed by a Majority-sided House.
It was considered under a certificate of urgency.
The Bill was adopted at a reduced rate of 1.5% from the initial 1.75% amid a Minority walkout.
President Akufo-Addo is expected to assent to the Bill for it to become law.