Ofori-Atta: E-Levy reduced to 1% in Budget 2023


Finance Minister Ken Ofori-Atta has said the government will reduce the E-Levy from the current 1.5% to 1%.

He said the daily threshold will also be removed.

Presenting the 2023 Budget Statement in Parliament on Thursday (24 November), Ofori-Atta said, “Review the E-Levy Act and more specifically, reduce the headline rate from 1.5% to one percent (1%) of the transaction value as well as the removal of the daily threshold.”

Some experts have in recent times called on the government to reduce the E-Levy rate.

IMANI survey
A survey conducted by IMANI Centre for Policy and Education, in collaboration with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), revealed that about 83% or eight in 10 respondents indicated that their volume of transactions has changed since the implementation of the E-Levy in May 2022.

The research, which interviewed 1,677 respondents across the country, was aimed at determining the impact of the E-levy on Ghanaians and the coping mechanisms Ghanaians had adopted since its passage in May this year.

Of this number, about 47% indicated that they had reduced the number of mobile money transactions by about 51 percent to 100%. “Our findings suggest that the official 24% attrition rate, which government estimates for the first three to six months following the introduction of the E-Levy, is likely to be much higher. This findings imply that the forecasted GHC4.5 billion E-Levy revenue target for 2022 is unlikely to be attained, given the strong consumer backlash, and people finding alternative means of undertaking financial transactions,” the survey said.

Source: Daily Mail GH

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