Accra, Nov 18, GNA – Dr Kenneth Ashigbey, Chief Executive Officer (CEO) of the Ghana Chamber of Telecommunications, says the Chamber is open for engagement on the 1.
75 per cent electronic transaction charges announced by the Government on Wednesday.
He said merchant payment was “one thing Ghana should be exempted from at this time” but indicated that the chamber was open for engagements with the Finance Minister and the Ghana Revenue Authority (GRA)for the good of all.
Finance Minister Ken Ofori-Atta announced 1.75 per cent charges on all electronic transactions on Wednesday during the presentation of the 2022 Budget Statement to Parliament.
Commenting on the announcement on the charges in an interview with the Ghana News Agency, Dr Ashigbey, said, “Telcos are yet to prepare to meet with the Finance Minister and GRA through a working group. “We are going into this engagement with learnings from countries that have done this… nobody wants to pay taxes, the enemy is cash and should be put away.”
Mr Ofori-Atta had said the introduction of the Electronic Transaction Levy was part of strategies to widen the country’s tax net, stressing that the fee would enhance financial inclusion and protect the vulnerable.
But the Telecommunications Chamber CEO said the 1.75 per cent was too much and that, it must be thought through well not to negatively impact the new jobs some of the taxes were seeking to create for the youth.
“Revenues are needed to develop the country, some taxes need to be paid but which one?” he asked.
Meanwhile, a Fiscal Policy Specialist at Oxfam, Dr Alex Ampaabeng, told the GNA that, the introduction of the Electronic Transaction Levy was inimical to the digitisation and cashless systems the Government was championing.
“The rollout of the tax and its planned mode of implementation is regressive and counterproductive to the government’s digitalisation drive,” he said.
“I am a bit disappointed compared to what I was expecting in the fiscal policy, especially on the tax side.”
“I think, this is going to be very regressive and counterproductive to the digitization agenda and encourage a cash-based society other than a cashless one – we are going to suffer.”
He said commodities have VAT components already and if payment through mobile money was going to be levied, “it is confusing, and I think that the poor will suffer the most. This is more than a quadruple rather than say double taxation.”
Some members of the public also expressed frustrations over what they said was the imposition of numerous taxes “without corresponding developments to alleviate poverty”, and called on the Government to revise the decision.
“Imagine being paid after-tax, then you try to transfer money to your momo, you will be taxed again. This is not right, the Government must come again,” Mr Isaac Attakorah Gyimah, a Banker said.
“To hear the Finance Minister say that Greater Accra Region contributes 90 per cent of total tax revenue in Ghana makes me cry and this 1.75 per cent is overbearing,” Ms Issabella Addai, a student, said.
Mr Frederick Martey, a trader, lamented over the levies, saying, “If I send GHC1000 to someone, the network takes one per cent charge. Now, another 1.75 per cent is added. The telcos won’t absorb this percentage so the innocent citizen will bear the cost and we can’t.”
Some Mobile Money vendors, expressed worry that the policy was likely to affect their work as the public could choose to go to the bank or not hold cash, transacting via momo.
They called for a new approach in addressing the matter not to create a cash-based system instead a cashless economy touted by the Government over time.
GNA
GNA