E-Levy: Government likely to miss revised GHC4.5 billion target, says expert

The government may not be able to rake in its revised GHC4.5 billion target for the Electronic Transfer Levy ( E-Levy) Fred Awutey, a law lecturer at the Tax College of the Chartered Institute of Taxation has said.

His comment comes on the back of the challenges being experienced by Ghanaians just days after the implementation of the E-Levy.

Speaking to Kwaku Nhyira-Addo on the Asaase Breakfast Show on Wednesday ( 4 May) Awutey said “If you look at the 2022 Budget as it was read in November, the tax actually covers so many items including remittances from outside, now with the outward tax, it has been limited to a certain scope.

“That already means that the earlier GHC6.7 billion estimated could not be realised even if we were to start the implementation somewhere in January this year. Now, if you look at the tax as it is, it creates so many avenues for somebody not to transfer. .. so if the person does not transfer, you cant get the money, so if there is an avenue for somebody to use other alternatives, then it means you cannot realise the revenue.”

He added “So for me, I do not anticipate that even the GHC4.5 billion, they may realise it. It is likely that they may hit somewhere far less than the GHC4.5 billion because of the alternatives provided within the tax law as it has been enacted.”

Listen to Fred Awutey in the audio attached below:

Revenue target for E-Levy revised down to GHC4.5 billion

The government has cut its revenue target from the Electronic Transfer Levy (E-Levy) to GHC4.5 billion, in line with developments following the proposal of the levy in November last year.

The Commissioner General of the Ghana Revenue Authority, Ammishaddai Owusu-Amoah, told Graphic Online on Thursday that the revision followed the reduction in the tariff rate from 1.75% to 1.5%, the delay in implementing the levy, and the negative sentiment that heralded the first presentation of the levy last year.

Reverend Dr Owusu-Amoah added that an internal survey by the GRA had shown that electronic transfers would slow in the first days of the levy’s implementation before picking up again.

However, he is optimistic that transactions will stabilise in the medium term as people get used to the new charge.

Dr Owusu-Amoah said the various exemptions to the E-Levy agreed by the government would boost the use of electronic transactions. Consequently, he urged the public to continue to patronise digital transactions, given the convenience they offer.

He also called on Ghanaians to take the levy as one of their contributions to nation-building.

Fred Dzakpata

Asaase Radio 99.5 – tune in or log on to broadcasts online
99.5 in Accra, 101.5 in Bawku, 99.9 in Bimbilla, 100.3 in Cape Coast, 90.7 in Ho, 98.5 in Kumasi, 99.7 in Tamale, 89.5 in Tarkwa and 106.9 in Walewale
Join the conversation. Call: 020 000 9951 or 059 415 7777. Or WhatsApp: 020 000 0995.
#AsaaseRadio
#TheVoiceofOurLand