President Nana Addo Dankwa Akufo-Addo has praised Parliament for passing the contentious 1.5 percent Electronic Transfer Levy (E-levy).
The President said the passage of the e-levy gives an opportunity for Ghana to revitalize its economy in his State of the Nation Address in Parliament on Wednesday, March 30, 2022.
“Mr. Speaker, despite the drawn-out and occasionally fractious nature of the proceedings, I am pleased that the House has finally found a way to pass the e-levy.” I believe the tax will make a substantial contribution to revenue mobilization and economic management, and I thank Members of the House for helping to make this happen.”
President Akufo-Addo acknowledged the challenges Ghana is likely to face in rescuing the country’s ailing economy.
He was, however, optimistic that the government’s recent steps would bear fruit.
“The path to recovery will be difficult and lengthy, Mr. Speaker,” the President addressed the House, “but we have started on a good basis by acknowledging that we are in a bad situation and are making the necessary decisions that will get us out.”
Despite a walkout by the Minority Caucus, Parliament approved the e-levy bill on Tuesday, March 29, 2022, after modifying portions of the document.
The Minority and some telecoms players have persistently opposed the E-passage, levy’s but the government has argued that it will solve Ghana’s economic problems.
Haruna Iddrisu, the Minority Leader, stated at the second reading in Parliament on Tuesday that his party will have no part in the E-levy in any way.
The Minority then followed through on their threat and staged a walkout, giving the Majority the upper hand to complete the bill’s second and third readings, resulting in its passage.
The fee, which was reduced from 1.75 percent to 1.5 percent, would be a tax on electronic transactions, including mobile money transfers.