By Sunday Elijah
Ghanaian Parliament on Tuesday passed the controversial electronic transaction tax bill, tagged E-levy bill, which the government says will assist in raising $900m in additional revenue.
“The Electronic Transfer Levy duly read today after the consideration stage has been passed,” Alban Bagbin, the speaker of parliament said.
However, before the bill was passed, the opposition legislators had staged a walkout, dismissing the new tax as unfair.
“The people have roundly rejected the e-levy and our constituents have told us to reject it, so why is the president imposing it on us?” said opposition NDC party parliamentarian Isaac Adongo.
“What is the crime of Ghanaians that now the government wants to use their pockets as collateral?”
When it becomes a law, it will introduce a 1.5 percent tax on electronic money transfers and transactions.
President Nana Akufo-Addo’s government said the move will help address problems from unemployment to Ghana’s high public debt.
Many Ghanaians see the new law as yet another burden since they are already struggling with high cost of living occasioned by rising fuel prices due to the Ukraine crisis.
Minister of Finance, Ken Ofori-Atta said government had already reduced the proposed tax from 1.75 percent to 1.5 percent after consultations, adding that it will bring in projected revenues of $927.5m.
President Nana Kufour and his cabinet members had recently cut their wages by 30 percent, along with other measures which they said will help generate $400m in savings for state coffers.