Minority MPs secure injunction against the implementation of E-levy
The Minority Caucus in Ghana’s Parliament has filed an injunction application at the Supreme Court in Accra against the implementation of the controversial electronic transaction levy also known as the E-levy awaiting a determination of its substantive case currently before the same court.
“We have today [Tuesday] successfully filed an application at the Supreme Court to injunct the implementation of the obnoxious E-levy pending the determination of our substantive case,” he said.
On Tuesday, March 29, 2022, Ghana’s legislature passed the bill in the absence of the Minority lawmakers, who had walked out before the Bill was considered at the second reading stage.
The levy, which was revised downwards from 1.75 per cent to 1.5 per cent on Tuesday, March 29, 2022, will be a tax on electronic transactions, including mobile-money payments.
Electronic transactions that are more than GH¢100 on a daily basis will attract the charge.
Opposers to the levy have cautioned that this new levy will negatively impact the Fintech space, as well as hurt low-income people and those outside the formal banking sector.
The controversial levy has been the source of tension in Parliament since it was introduced in the 2022 budget and has led to a scuffle between lawmakers in Parliament in December 2021.
The government has, however, argued the levy would widen the tax net and that could raise an extra GH¢6.9 billion in 2022.
There are also concerns that the government may securitize proceeds from the E-levy to raise extra revenue.
Three members of the Minority caucus in parliament dragged the Attorney General and Minister of Justice to court over the E-levy approved by Parliament on Tuesday, March 29, 2022.
The lawmakers are Minority Leader, Haruna Iddrisu (Tamale South), Mahama Ayariga (Bawku Central), and Samuel Okudzeto Ablakwa (North Tongu).
According to them, Ghana’s legislature at the time did not have the right numbers to form a quorum for the passage of the E-levy Bill into law, thus, asking the apex court to declare the approval as a nullity.
They are invoking the original jurisdiction of the court pursuant to Articles 2 (1) and 130 (1) of the constitution and rules 45 (1) and (2) of the Supreme Court rules (1996) C. I 16.
They are among other reliefs seeking a further declaration that “the purported vote by the 136 Members of Parliament on each clause of the Electronic Transfer Bill, 2021 is in contravention of Article 104(1) and therefore null, void and of no effect whatsoever”.
“An order of the Honourable Court setting aside the purported passage of the Electronic Transfer Levy Bill, 2021, by the 136 Members of Parliament of the Majority Caucus present in the Chamber of Parliament on the 29th March 2022 as being unconstitutional, null and void”.
