Some Ghanaians on social media have expressed their discontent over government’s decision to introduce the Electronic Transaction Levy or E-Levy.

While delivering the 2022 Budget in Parliament on Wednesday, Finance Minister, Ken Ofori-Atta indicated that government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector.

The E-Levy covers electronic transactions, including mobile money payments, bank transfers, merchant payments and inward remittances and the 1.75% to be charged will be borne by the sender except inward remittances, which will be borne by the recipient.

He further stated that the levy, which is supposed to take effect next year January after Parliament approves the budget will be used to support entrepreneurship, and ensure youth employment.

Despite these assurances and the fact that all transactions adding up to ¢100 or less per day (which is approximately ¢3000 per month) will be exempted, users say this levy seeks to counter the cashless economy government is trying to attain.

They say this initiative is targeted at exploiting the already disadvantaged Ghanaian since Vice President, Dr Mahamudu Bawumia in 2020 opposed the imposition of taxes on mobile money.

Speaking on Peace FM, the Vice President said: “I don’t think Mobile Money should be taxed because most of the people who use the service are poor people so if you put more taxes on it, they will suffer.”

Below are some comments from Twitter:

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