E-Levy: GHS 60m in revenue generated so far from controversial levy
Approximately some GHS 60m (10 percent) in revenue is what has been generated so far from the controversial electronic transaction levy (E-Levy) which is expected to rake in for government a total revenue amount of GHS 4.5bn.
The said 10% revenue generated from the E-Levy was made known by leading member of the governing New Patriotic Party (NPP), Gabby Otchere-Darko.
In a series of tweets, Mr. Otchere-Darko said the E-Levy, since its implementation has generated less than GHS 60 million instead of the expected GHS 600 million.
“After 5 months of stalemate and bashing, the e-levy, after implementation, is delivering only 10% of estimated revenues; our revenues remain very low as compared to the rest of the world; debt levels dangerously high, cedi, like most currencies, struggling against the US dollar,” he tweeted.
Touching on the economy, he said Ghana’s ability to service debts is lowering, although the economy is growing faster than most countries around the world.
“Our economy is growing faster than most countries around the world. But, that alone can’t save us as confidence in our ability to service our debts is lowering. We can’t continue to use all the little revenues raised to pay our debts. Very soon we may have to borrow to pay wages.”
“What options are open to government? The question should rather be: what option, if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600 million [cedis] by now has done less than 60 million [cedis],” he added.
The government commenced the implementation of the levy on May 1, 2022, after its initial announcement in the 2022 budget.
The E-levy was reduced from 1.75% to 1.5% following protests from various stakeholders.
The reduction was considered insufficient by groups that were calling for the levy to be scrapped.
The government had hoped to rake in about GHS 7 billion from the collection of the 1.5% levy on mobile money and other electronic transactions, but the figure was revised downwards to about GHS 4.5billion recently.
Meanwhile, a recent study on the impact of the electronic transaction levy on electronic transfers 45 days after the implementation of the levy has revealed some interesting findings.
Possibly the first empirical study of the impact of E-Levy on Ghanaians after its implementation, the study by Think Tank, IMANI Ghana reveals close to 43.8% of Ghanaians have reverted to using cash in undertaking transactions, retrogressing the government’s cash lite economy agenda.
Per the study, another 20.7% of the Ghanaian populace, are exploring loopholes in the implementation of the levy by collaborating with mobile money vendors.
A further 18.1% of the population are using mainstream banks to undertake transactions all in the bid to avoid the E-Levy charge.
Additionally, a whooping 69% of the Ghanaian populace when undertaking digital transactions, spread the amounts across days making small payments [less than GHS 100] in order to escape the E-Levy charge.
