President Nana Addo Dankwa Akufo-Addo has signed into law, the Electronic Transfer Levy (E-Levy) Bill, two days after it was passed by parliament.
The assent to the bill has now paved the way for the implementation of the levy in May as announced by the Minister for Finance, Mr. Ken Ofori-Atta.
Parliament passed the bill last Tuesday without the National Democratic Congress (NDC) minority group, which staged a walkout in protest against the government’s new tax policy for domestic revenue mobilisation.
Consequently, three members of the Minority filed a suit at the Supreme Court to challenge the passage of the levy, insisting parliament did not have the numbers to pass it.
They are the Minority Leader and MP for Tamale South Haruna Iddrisu; Mahama Ayariga and Samuel Okudzeto Ablakwa, MPs for Bawku Central and North Tongu respectively.
The levy, which was amended from 1.75 percent to 1.5 percent, will be a tax on electronic transactions, which includes mobile-money payments.
The charge will apply to electronic transactions that are more than GH¢100 on a daily basis.
President Akufo-Addo had earlier expressed excitement over the approval of the E-Levy in Parliament.
He said even though the said although the processes leading to the passage of the bill have been long-drawn-out, he believed the levy will contribute significantly to revenue mobilisation.
“Mr Speaker, despite the protracted and sometimes acrimonious nature of proceedings, I am happy that the House has, finally, found it possible to pass the e-levy. I believe the levy is going to make a significant contribution to revenue mobilisation and the management of the economy, and I want to thank Members of the House for making this possible.
“The road to recovery will be hard and long, Mr Speaker, but we have started on a good footing by accepting that we are in a difficult place, and are taking the difficult decisions that will get us out”, President Akufo-Addo told Parliament when he presented on message on the State of the Nation (SONA) on Wednesday.
Critics disagree
Critics of the proposal have warned that this new levy will negatively impact the Fintech space, as well as hurt low-income people and those outside the formal banking sector.
The levy has been the source of tension in Parliament since it was introduced in the 2022 budget.
The tensions culminated in a scuffle between lawmakers in Parliament in December 2021.
The government has, however, argued the levy would widen the tax net and that could raise an extra GH¢6.9 billion in 2022.
