We will accept 1% E-levy – Haruna Iddrisu
Leader of the Minority Caucus, Mr Haruna Iddrissu has made it clear his side is willing to accept the E –levy tax if it is reviewed downwards to 1% from 1.75%.
The legislator indicated that this will be for the betterment of Ghana in the long run.
“A week ago, we said no, we won’t accept E-levy but having listened to officials in government, including the Minister of Finance, I am convinced to accept a departure from my original no to accepting a one per cent E-levy,” he said.
Mr.Iddrisu revealed this at the 10th-anniversary launch of the Ghana Chamber of Telecommunications in Accra on Thursday, December 2, 2021,
He added that “Pegging the E-levy at one per cent was a great contribution to fiscal consolidation and would ensure the economy did not collapse going forward”.
According to Mr.Iddrissu, it was unwise to overburden the telecommunications sector as the digital economy experienced a boom and had facilitated a revolution in financial inclusion.
We are not against it, but we want it fixed at one per cent. We fear for double taxation because we already have the communication services tax,” he said.
Initially, the Member of Parliament for Tamale Central did not support the GH¢100.00 threshold a day and called for it to be pegged at GH¢500.00.
But he later suggested that the money should rather be pegged at GH¢300.00 after some considerations.
Though the legislator stressed the need for Ghanaians to pay taxes to help develop the country, it should not be one that would further put constraints on their tight purse.
Chief Executive Officer of the Ghana Chamber of Telecommunications, Dr Kenneth Ashigbey also alluded to the responsibility of paying tax for development considering the budget deficits and debts.
Meanwhile, he is of the view that the way taxes were introduced to generate revenue must be reviewed again, so it does not in turn hurt the government’s digitalisation drive and financial inclusion.
Dr Ashibey further said “Government’s push for entrepreneurship amongst the youth for job creation in the face of a 1.75% e-levy was a matter of concern’’, and revealed that the Chamber was engaging government to see the best way out.
On the issue of widening the tax net, he also suggested that merchant payments should be exempted completely from the E-levy.
“The Chamber believes that artisans including masons, dressmakers, and painters get paid after work done and do not pay tax. They need to be part of the merchant ecosystem, and to do so there must be no levy on merchant payment,” he said.
“Once their wallet is taxed, they will venture into the merchant ecosystem, it gives government visibility of revenues they make. Government then charges corporate income taxes at the end of the year if they file their expenditures.”
By: Stella Annan | myactiveonline.com Twitter @activetvgh
