Government has indicated that cessation of the collection of road tolls is part of a broader measure to bring about equitable and fair taxing of the citizenry and take care of niggling problems that have developed at the tolling points.
Collection of the road tolls was mooted to help realize more funds to fix roads.
However, over the years, the tollbooths have become unhealthy market centres leading to heavy traffic that lengthen travel time and negatively impacted productivity.
The congestion generated at the tolling points besides creating these inconveniences also leads to pollution in and around those vicinities.
Interacting with the media, Deputy Minister for Finance, Dr John Kumah indicated the government has also realized that most of the tollbooths are found in areas where a lot of Ghanaians who are trying to reach out of poverty reside like Ashaiman and Kasoa while the affluent who live in East Legon and other places are not paying similar taxes.
The government, he said, has therefore moved to address these challenges by abolishing all tolls on public roads and bridges and stressed that the expected impact on productivity and reduced environmental pollution will more than offset the revenue forgone by removing the tolls.
Dr Kumah announced that the toll collection personnel will be reassigned to other institutions and agencies to ensure they do not become unemployed.
Entrepreneurs
On support for entrepreneurs and the private sector, he noted that through the YouStart Initiative, the government is proposing GH¢1 billion each year to catalyze an ecosystem to create 1 million jobs and in partnership with the Finance Institutions and Development Partners, raise another 2 billion cedis.
“In addition, local banks have agreed to a package that will result in increasing their SME portfolio up to GH¢5 billion over the next 3 years. This will result in an unprecedented historic GH¢10 billion commitment to the private sector and YouStart over the next 3 years.
“Government has also acquired license to set up the Development Bank Ghana. Through the Bank, Government will provide a powerful response to a long-standing desire of our businesses to easier access to medium and long-term loans at affordable interest rates.
“Government is also committed to its 1D1F programme while extending two years tax relief for manufacturers in the textile industry”, he stated.
Infrastructure
On infrastructural development, the government indicates that ongoing road projects will continue in 2022 and these include upgrading of the Akrodie-Sayereso road, the Nobekaw-Sankore Road and Atronie-Mim Road in the Ahafo Region.
In the Ashanti Region, the following roads will also be upgraded; the Nsuta-Beposo, Lot 3; Mampong-Kofiase Road (Km 0.0-14.0), Lot 2; Reconstruction of Anwiankwanta- Obuasi Road and the Obuasi Town Roads.
The government, Dr Kumah said, has also started the process to develop housing schemes on a 200-acre land at Dedesua in the Ashanti Region, which will provide 12,000 housing units.
Government is also funding the development of an additional 6km of standard gauge rail line from Adum to Kaase in the Ashanti Region.
Dr Kumah indicated that the NABCO programme, which was designed as a temporary stepping stone for young graduates for three years has benefited 100,000 young graduates with over 33,000 trainees already securing jobs.
“Government will work to ensure that the remaining NABCO trainees are effectively supported to take advantage of the opportunities YouStart presents.”
“Currently all NABCO personnel are still at post, Government has made an allocation in the 2022 budget for them to work for one more year while steps are taken to give them permanent jobs. Aside this Government will prioritize their selection for the YouBanC initiative”, he added.
E-Levy
Explaining the transaction taxes and e-levies, the government indicates that it decided to place a levy on all electronic transactions after considerable deliberations to widen the tax net and rope in the informal sector.
“Electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances will be charged at an applicable rate of 1.75%, which shall be borne by the sender except for inward remittances, which will be borne by the recipient.
“To safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day (which is approximately GH¢3000 per month) will be exempt from this levy.
“A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others.”
Transactions affected
To ensure as many people as possible can contribute taxes through the levy, the E-LEVY is assessed on the below types of transaction:
• Mobile Money Transfers: sending money from your wallet to another person using mobile money
• Mobile Money Merchant Payments: when you pay for a service or a product from a merchant using your mobile money account
• Merchant Payments Using POS or QR: transactions at merchant locations that are done using a POS, QR or alternative payment channel will be assessed the levy.
• E-Commerce/Online Payments: the E-LEVY will be charged to the customer for payments for goods and or services.
However, not all transactions will be impacted by the E-LEVY. The government has made the following types of transactions exempt from the levy.
• Bank transfers and cheques – bank transfers and cheques will be exempt from the E-levy.
• Daily Free Limit – every taxpayer will be able to send up to GH¢100 / day in exempt transfers that they can do.
• Transfers between accounts your own accounts – if you are moving money between your own accounts (i.e., of the same taxpayer) then you will not be charged the E-LEVY.
