Commercial banks are making a last-minute appeal for the tax on electronic transactions to be reduced marginally to not more than 1%.

Speaking on PM Express Business Edition, Chief Executive of the Ghana Association of Bankers John Awuah noted that the current 1.75 per cent may erode some gains made so far in the banking sector and financial inclusion.

“As an Association, we think that the 1.75 is too high, and the rate should be reduced because we believe that anything around 1 per cent could be good at the entry point,” he said.

https://www.youtube.com/watch?v=IUPIQzBziOA

Mr Awuah noted there is an opportunity to even review the rate in the Mid-Year Review of Estimates in July depending on how things go in terms of the levy, adding that they don’t think that it should be pegged at 1.75 per cent.

Finance Minister, Ken Ofori-Atta is currently barking on stakeholder consultation before the document is presented to parliament for approval.

However, JoyBusiness is learning that the proposed E-Levy rate still stands at 1.75 per cent.

The tax has been the bone of contention since government presented its 2022 Budget statement to the House last year.

https://www.youtube.com/watch?v=lpufjgfeAyw

The Finance Minister has indicated that the move will increase the country’s tax-to-GDP from 13% to a targeted 16% or more.

But the Minority has also insisted that the tax is a tool to exacerbate the plight of the ordinary Ghanaian, which the Covid-19 pandemic has already impacted.