Hon. Samuel Okudzeto Ablakwah, Member of Parliament (MP) for North Tongu, has chastised the government for appointing a third party to oversee and supervise the collection of the proposed electronic levy tax in the 2022 budget.

The Bank of Ghana (BoG) and Ghana Interbank Payment and Settlement Systems Limited (GhIPSS), per the renowned MP, are fully able to collect and manage the proposed taxes.

According to the Member of Parliament, successive administrations have made significant investments to ensure that these revenue collection organizations are well-equipped, making the inclusion of a third-party revenue-collecting agency superfluous.

Mr. Ablakwa also revealed that the government has utilized its revenue modelers to estimate how much money it will raise from the charge, which he anticipates to be over Ghc6.9 billion.

“So, you have all the numbers you have stated in the budget, you have done the modeling, you even know how much you are expecting to raise. If you have this reality together with all the investment that has been made in the revenue assurance space, you do not need a third party.”
Mr. Ablakwa

The Member of Parliament further stated that a private firm had been contacted to act as a standby for the revenue assurance contract well before the procurement process is initiated, which he believes is inappropriate.

“And this is another fundamental issue we have with this regarding this levy.”
Mr. Ablakwa

Mr. Ablakwa expressed skepticism about the e-levy approval, believing it will be exceedingly unlikely.

Gov’t earmarks GHC241 million for the collection of the e-levy services

Earlier on, Samuel further intimated that the Minority Caucus will demand full disclosure of the electronic transaction levy, which the Ghanaian government has set aside GHC241,933,000 for.

The MP argued that it is unethical for the government to tax the poor in order to enrich the wealthy.

Samuel Okudzeto contended that if the Minority Caucus succeeds in getting the e-levy repealed, it will have an impact on “shadowy” business interests.

“It does appear our agitations against the E-Levy is going to really affect some shadowy business interests if we succeed in having it scrapped or substantially reduced.

“Appendix 4B at page 242 of the 2022 budget reveals that a colossal GHC241,933,000 has already been set aside to pay for so-called e-Transaction Levy Services.

“We shall be demanding full disclosure in Parliament on this apparent sweetheart deal. Taxing the poor to make the rich richer. This is most unconscionable!”
Mr. Ablakwa

Justification for the GHC241 million Allocation

However, John Kumah, the Deputy Minister of Finance, defended the GH241 million provision for the institution to collect the controversial e-levy collection.

According to John Kumah, the amount is required to allow the institutions with the competence to monitor and ensure that the E-levy generates the expected revenue.

“It is just another propaganda to hold on to straws and to raise concerns where there are none. If you look at the allocation, it is not linked to any entity or group. If he [Hon. Ablakwa] suggests that the GRA has the capacity to undertake that role of making sure we raise the expected revenue, then we will go to them.”
John Kumah