Parliament of Ghana has approved the reduction of the Electronic Transfer Levy (E-Levy) from 1.5 percent to 1 percent.
The motion to reduce the e-levy was approved by the house after the lot fell on the Majority to move the motion, leading with a headcount of 136 votes against the Minority with 135 votes.
Effective implementation of the new policy will kick start come next year, 2023.
Dr. Cassiel Ato Forson, Ranking Member on the Finance Committee of Parliament said, while debating about the amendment of the Bill in Parliament that the Minority would now support the levy to help the government rake in an amount of GH¢2.2 billion for 2023.
The Ranking Member on the Finance Committee of Parliament also indicated in his argument that though the house has agreed on the reduction of the e-levy rate to 1percent, the GH¢100 threshold on daily transactions still holds.
“The value of GH¢100 from the time the levy was introduced till today has been eroded. So I don’t know why that threshold should be removed. Our position is that; this levy should be removed completely. Since we haven’t been able to achieve that and government has reduced it from 1.5 to one percent, we cannot be the same people to oppose it.”Dr. Forson
In the meantime, the 2.5 percent Value Added Tax (VAT) proposed by the government has also been approved and will likewise take effect in 2023.
This implies that Ghanaians will have to prepare to pay more for goods and services in the coming year.
According to Minority Leader, Haruna Iddrisu, this new approval will further deteriorate the economy.
The Appropriations Bill for 2023
The Appropriations Bill for the 2023 fiscal year has also been approved by parliament and it consists of government’s budgeted expenditure.
As contained in the bill, the government, in 2023 intends spending GH¢227 billion together with GH¢800 million from the Consolidated Fund and other public funds.
The house was then led to approve the bill by the Speaker of Parliament, Alban Bagbin.
“The Appropriation Bill 2022 is duly read the third time and passed.”Alban Bagbin
Meanwhile, with no appointed date for resumption, the house has been adjourned for the Christmas celebrations.