By Alex Ababio
Director of the Institute of Statistical, Social and Economic Research (ISSER), Prof. Peter Quartey has insisted that 1.5 % on E-levy will drive e-transation consumers away .
He ,therefore , called for a reduction in the 1.5% rate charged for e-levy.
Professor Quartey whilst speaking to the media in an interview noted that the rate of e-levy as it stands, will discourage a lot of consumers from patronising e-transaction services.
“If you’re going to tax, you ought to be very careful with the rate at which you tax since there are other options and as for me, this is why we recommended that a rate below 1% is something that most consumers will cope with, but as the rate increases, be rest assured that people will find alternatives and you may not be able to realise the revenue earmarked,” he said.
He, however, urged the government to review the 1.5% rate.
Professor Quartey, however, used the opportunity to call attention to some benefits of the levy, indicating that “having passed the e-levy will guarantee some sort of believe that revenue gap will be plugged in one way or the other, perhaps not fully, but at least there’s some revenue that will be realised from this.”
Parliament on Tuesday, March 29, 2022, passed the controversial Electronic Transactions (E-Levy) Bill.
Parliament took this decision after the Consideration Stage was completed by a Majority-sided House.
The Bill admitted under a certificate of urgency.
It was adopted at a reduced rate of 1.5% from the initial 1.75% amid a Minority staging a walkout.
It is expected that President Akufo-Addo will append his signature to the Bill for it to become operationalized .
