Set E-levy at 0.5% – ISSER tells government

The proposed rate announced by the Ministry of Finance is 1.75 per cent, effective 2022, as part of government’s efforts to significantly increase its revenue.

Is allowance instantly strangers applauded

The Director of the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana, Professor Peter Quartey has urged the government to peg the e-levy at 0.5 per cent.

The proposed rate announced by the Ministry of Finance is 1.75 per cent, effective 2022, as part of government’s efforts to significantly increase its revenue.

Professor Quartey spoke to Accra-based TV3 on Monday [November 29].

He described the government’s target to increase said revenue by 42% as “ambitious,” noting that “I don’t think that alone would make up for that. Same with the fiscal consolidation, we may achieve something but I don’t think we might hit the 7.4 per cent. Even that, already people are agitating and speaking against the e-levy and some of the levies proposed.”

The Minority in Parliament has already expressed its resolve to reject the 1.75 per cent proposition tabled by the government. The caucus voted against the budget last week after the Majority caucus staged a walkout.

The Minority Leader announced in Ho that “Mr Speaker, understandably, we see that the Minister of Finance seeks to introduce some measures including the now popularly declared e-levy or digital levy as some have quite named it.

“Mr Speaker, our concern is whether the e-levy itself is not and will not be a disincentive to the growth of digital economy in our country. We are convinced that the e-levy may as well even be a disincentive to investment and a disincentive to private sector development in our country. We in the minority may not and will not support government with the introduction of that particular e-levy. We are unable to build national consensus on that particular matter.”

Parliament is expected to reconvene on this matter today. Meanwhile, the Minority leader has urged the Finance Minister to revise the budget and table it for further consideration.