Majority Leader Osei Kyei-Mensah-Bonsu has stated that the Electronic Transfer Levy (E-levy) Act, 2022, (Act 1075) is already in operation even though the prescribed levy of 1.5 percent on all electronic transfers is not yet being deducted by service providers.
According to him, a bill automatically becomes operational after being passed by Parliament and assented to by the President and therefore the E-levy is already being implemented.
Minority Leader Haruna Iddrisu, North Tongu MP Samuel Okudzeto Ablakwa and Bawku Central MP, have filed an application at the Supreme Court for an injunction on the implementation of the E-levy, pending the hearing of their substantive case on May 4, challenging the constitutionality of passage of the E-Levy Bill.
However, addressing a news conference in Parliament last Friday, Mr Kyei-Mensah-Bonsu argued that the plot by the Minority to halt implementation of the Act was one step too late.
“They say they want to stop the implementation but the Bill is already being implemented, I don’t know what they mean by that. Upon the assent of the President to the bill, if Parliament has not postponed the operation, immediately after the assent becomes into operation”, he stated.
The Majority leader warned that anyone who falls foul of the E-levy Bill can be prosecuted because it has already been assented to by the President.
“So this bill is in operation, the necessary structures are being put in place now but it doesn’t mean it is not being implemented, it is being implemented if the Minister tells you that the actual collection starts from 1st May,” he stressed.
Dangerous precedent
The action by the Minority, Mr. Kyei-Mensah-Bonsu noted, is breeding a dangerous precedent in Ghana.
He stressed that the Minority and opposition parties exist in Parliament as a whole to put the government on its toes, especially through its committees.
Mr. Kyei-Mensah-Bonsu argued that if something untoward happens during parliamentary proceedings, a Committee, an individual or the caucus could raise the matter on the floor of Parliament for redress rather than rush to court.
“The business of the house requires that these matters are mooted through Parliament using the structures to challenge decisions that are taken. If you are saying that you don’t think it was an appropriate representation in the House and you have taken a decision you can come by a motion.
“As far as I am concerned, let us endeavour to exhaust the processes and procedures in Parliament, if you are not satisfied and you want to move further upstairs, yes.
“But at the say-so of an individual you rush to court when the matter had not been dealt with in Parliament, it is a very dangerous precedent in this country”, he added.
Electronic Transfer Levy Act
Per the Act, an electronic Transfer levy is imposed on 1.50% on all electronic transfers.
The levy is charged on an electronic transfer at the time of the transfer.
It applies to the following transfers:
-Mobile money transfers done between accounts on the same electronic money issuer
-Mobile money transfers from an account on one electronic money issuer to a recipient on another electronic money issuer
-Transfers from bank accounts to mobile money accounts
-Transfers from mobile money accounts to bank accounts
-Bank transfers on an instant pay digital platform or application originating from a bank account belonging to an individual subject to a daily threshold to be determined by the Minister of Finance.
The Charging Entities are:
-Electronic Money Issuers
-Payment Service Providers
-Banks
-Specialised Deposit Taking Institutions
-Other Financial Institutions prescribed by Regulations made under the Act.
