Former Finance minister, Dr. Kwabena Duffuor
A former Minister of Finance in overdue President John Evans Atta Turbines’ govt is advocating the taxing the extractive business, slightly than the digital transactions to which many are adversarial to.
Dr. Kwabena Duffour who may be a former Governor of the Financial institution of Ghana, argued that taxing digital transactions termed “E-levy”, is inconsistent with govt’s digitalisation time table.
Additionally, exercising that will likely be counterproductive to the Ghanaian, who’s already financially careworn, owing to the commercial hardship confronting the country as a complete for which reason why, Executive urges the early life to veer into entrepreneurship.
A submit at the reputable Twitter web page of Dr. Duffour learn: “For a central authority that desires to leverage on digitalization the e-levy contradicts the facilitation of a virtual financial system and worsens monetary prerequisites for already suffering Ghanaians.”
“Specializing in the extractive business yields extra earnings with out the load the e-levy creates,” he added.
Having mentioned that, he gave an estimation of earnings more likely to be generated from e-levy every year as in comparison to the extractive business which contains the oil and mining sectors.
Consistent with him, some GH₵6.9 billion can be collected from taxing digital transactions corresponding to cellular cash, financial institution transfers, service provider bills and inward remittances while when taxed, the oil and mining sectors can generate as much as GH₵25 billion.
Thus, if govt will have to revert its resolution and make a choice the other as indicated, the state goes to make some additional GH₵18.1 billion which don’t have a unfavourable affect at the financial lives of Ghanaians.
In the meantime, govt appears to be bent on imposing the mentioned levy, even though the load of the Ghanaian has been decreased by way of some 0.25% at the meant 1.75% levy by way of the intervention of the telecommunication firms,who’ve agreed to soak up the quantity.
“We [government and telcos] have been in a position to come back down by way of 0.25 in line with cent because of this that the affect will pass down for the common Ghanaian,” the Minister for Finance, Ken Ofori Atta mentioned whilst talking on the Annual New Yr College held on the college of Ghana on Wednesday, January 26, 2022.
Because it stands now then again, transfers not up to GH₵100 were exempted from the taxation, Ken Ofori Atta indicated.
For a central authority that desires to leverage on digitalization the e-levy contradicts the facilitation of a virtual financial system and worsens monetary prerequisites for already suffering Ghanaians. Specializing in the extractive business yields extra earnings with out the load the e-levy creates. percent.twitter.com/7SRkRYakbY
— Dr. Kwabena Duffuor (@DrDuffuor) January 27, 2022