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The Institute of Statistical Social and Economic Research (ISSER) wants the government to reduce the rate of the controversial electronic transfer levy.
According to ISSER, the government must consider a downward adjustment between 0.5% and 0.75% adding that the 1.5% on all electronic transfers is punitive.
The Director of the institute, Professor Peter Quartey, speaking on the topic: “Harnessing stakeholder engagement and feedback for research impact” at the 2022 ISSER Road Show at the University of Education, Winneba (UEW) said with the current 1.5% rate, the government’s goal of mobilizing about GH¢4.1 billion would be missed as more people would avoid using the platform but instead use alternative methods to avoid paying the tax.
He stated that “The 1.5% E-transaction levy rate is punitive and should be revised downwards to between 0.5% and 0.75% to allow more people to use the service and avoid eroding the gains made in digital financial inclusion.”
The E-levy was introduced by the government in the 2022 Budget for basic transactions related to digital payments and electronic platform transactions.
The rate will apply to electronic transactions that are more than GH¢100 daily. This is different from the 1% telcos charge on transactions.
The levy has sparked controversy because of its impact on mobile money transactions and the impoverished Ghanaians that use it.
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Source: GhArticles.com
