Finance Minister, Ken Ofori-Atta says the newly announced E-levy will not discourage entrepreneurship, stressing that its purpose is not to impose further difficulties for existing businesses in the country.

Contrary to fears from a section of the general public, Ken Ofori-Atta said the essence of the 1.75% E-levy is to provide government with the necessary wherewithal to support local entrepreneurs.

Speaking on Accra-based Asaase Radio on Thursday, Mr Ofori Atta said given the teeming number of unemployed youths in the country, there's the need for government to expand the country's entrepreneurial frontiers.

In doing this, Mr. Ofori-Atta said taxes are inevitable, and therefore the E-levy is one of such taxes designed to cushion the strides of entrepreneurs; thus rubbishing suggestions that the new policy will cripple businesses.

"Through the levy [E-levy], government is able to do about a billion Cedis each year for three years. Through the agreements that we're having with some donors and international financial institutions, we get another 2 billion for this effort. In speaking with the partnership of the banks, we are getting a certain amount of their loans into this SME which will be about 5 billion. So together we've been able to put together a 10 billion package to support the youth towards entrepreneurship," Mr Ofori-Atta explained.

Meanwhile, the Minority has decried the levy policy, describing it as an insensitive move that will only deepen the plights of already suffering Ghanaians.

They have, therefore, urged government to rescind its decision to impose the tax, which is due to take effect from January 2022.

The E-levy was contained in the Finance Minister's budget which he presented to Parliament on Wednesday, November 17, 2021.

According to the Finance Minister, the E-levy of 1.75% will be imposed on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances which shall be borne by the sender except inward remittances which shall be borne by the recipient.