Consensus has not yet been reached on the proposed e-tax
1.75% tax applied to all electronic transactions
GRA mandated to collect the funds generated by the direct debit
The finance ministry has denied claims that a private company was awarded a contract to collect the funds generated by the proposed tax on electronic transactions.
A statement released by the ministry on December 13 said the tax arm of government, the Ghana Revenue Authority, is the agency mandated to collect electronic tax revenue.
Reacting to posts circulating on social media indicating that the government had dropped an allocation of GH ¢ 241 million for the tax, the ministry said the claims were false.
The attention of the Ministry of Finance has been drawn to social media posts claiming that the government has removed the allocation of GHC 241,933,000 for electronic transaction direct debit services in the 2022 budget and that it is not ‘will therefore not appear in the appropriation bill,’ the statement said.
“In addition, the ministry is aware of allegations that a private company has been awarded a contract to collect the E-Levy. Another allegation is that the services of said private company have now been terminated.
“The Ministry of Finance wishes to declare that these allegations are all false,” he added.
Meanwhile, there have been rifts between lawmakers in parliament and the general public since the e-tax bill was announced, many of which have called for either removed or a percentage reduced.
During the presentation of the 2022 budget statement in November, Ken Ofori-Atta announced the 1.75% levy on electronic transactions covering mobile money, ATM withdrawals and inbound remittances.
Despite some changes to the 2022 budget statement, a consensus on electronic direct debit has not yet been reached.
Read the press release from the Ministry of Finance below:
FOR IMMEDIATE RELEASE
SKIP GHC241M E-LEVY TRANSACTION SERVICES MEDIA POST
1. The attention of the Ministry of Finance has been drawn to social media posts claiming that the government has removed the allocation of GHC 241,933,000 for electronic transaction direct debit services in the 2022 budget and that it therefore will not appear in the supply bill.
2. In addition, the Ministry is aware of allegations circulating that a private company has been awarded a contract to collect the E-Levy. Another allegation is that the services of the said private company have now been terminated.
3. The Ministry of Finance would like to declare that these allegations are all false.
4. The Ghana Revenue Authority (GRA) is the state agency mandated to provide collection services, the cost of which should not exceed the standard of revenue mobilization as has always been the practice. This indicative standard cost is what is indicated in the budget. GRA will handle all discussions to ensure the full deployment of their current platforms and resources for E-Levy collection.
5. On December 6, 2021, the Hon. The Minister of Finance has provided full clarification on the allocation of GHC 241 million to the cost of direct debit services. For the avoidance of doubt and to avoid further misinformation, we reproduce the relevant sections of the Minister’s statement.
6. “We have an agreement with the Ghana Revenue Authority which uses up to 3% of the money it collects to make sure it can make such collections. So the GH241 million is a reserve that is intended to be set aside to facilitate the GRA collection of these resources, ”to quote the Minister.
7. “Also, usually when we have new tax measures there is the issue of refunds and we usually do some compensation for that, sometimes around 6% of the value to ensure that if those refunds come in we are able to pay for them, ”added the Minister.
8. “So in essence it will really be about supporting the GRA in a way that ensures that all the problems that people see and the hardships that other countries face is alleviated in Ghana, so we should be prepared to support that. . “
9. We would like to reiterate that the tax on electronic transactions remains one of the effective means by which the government would be able to increase the revenues necessary to support the economic development programs for 2022. We count on your support.
ISSUED BY THE PUBLIC RELATIONS UNIT MINISTRY OF FINANCE