Member of Parliament for Ningo Prampram (MP), Sam George has said the government will not meet its revenue generation target for electronic transactions next year even if the e-levy is approved.

Finance Minister, Ken Ofori-Atta during the presentation of the 2022 budget announced the introduction of a 1.75% levy on all digital transactions.

The levy will be borne by persons money through any digital transactions except for inward remittances which will be borne by the recipient.

The government is seeking to raise a total revenue of GHS 6.9 billion from taxes on the E-Levy next year.

But speaking on the AM Show on JoyNews, Monday, the Ningo Prampram MP opined that the government will fall short of its revenue target on taxes even if Parliament approves the E-Levy.

According to the legislator, the newly introduced levy was not thought through properly, hence, government’s core aim of raising revenue will not be realised.

“I am putting it to you that they will not raise the amount that they claim they will raise, there will be a revenue shortfall on this tax even if they are able to push it through,” he argued.

Citing some countries in Africa where taxes have been imposed on digital transactions, the Deputy Ranking Member on Communications Committee in Parliament said these countries experienced huge revenue shortfalls.

“In Uganda, it affected MoMo revenues by 80%. In Kenya when they introduced it, they saw a 43% dip in transaction values,” he noted.

He said the new levy is an inhibiting factor to advancing the digitalization agenda.

Meanwhile, Afigya Kwabre North MP, Collins Adomako-Mensah believes the new levy will broaden the tax net.

Reacting to the claim by the Ningo Prampram MP, Mr. Adomako-Mensah said the debate on the budget will clarify how the new levy will be implemented.

“For me, I support 100% the idea of broadening tax net which is what this particular E-levy seeks to do.  I think what is left now is for government to explain in detail the mechanics as to how this particular levy is going to be implemented,” he said.

Since the announcement of the new levy, it has generated huge criticism against the government by some MoMo users.

Their concerns are that the levy if approved, will worsen the economic hardships in the country.



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