Ghana is set to decrease the controversial Electronic Transfer Levy from 1.5 percent to 1%.
However, as part of the review of the e-levy statute, the GHS 100 daily threshold intended to protect vulnerable individuals will be lifted.
On Thursday (November 24), Finance Minister Ken Ofori-Atta made this declaration during the 2023 budget reading in parliament, noting that the review was part of a “seven-point strategy targeted at restoring macroeconomic stability and driving our economic transformation.”
The minister admitted that the levy which was introduced in the 2022 budget “has not yielded the resources as expected.” The introduction of the electronic levy was to help the government mobilise domestic revenue.
Mr. Ofori-Atta also noted that the government received several proposals for a review of the E-Levy “and is working closely with all stakeholders to evaluate the impact of the Levy.”
He said these could include the revision of the various exclusions.
“As a first step, however, the headline rate will be reduced to one percent of the transaction value alongside the removal of the daily threshold,” Mr. Ofori-Atta stated.
The government reduced expectations for revenue collection from the levy after an initial projection of GHS 7 billion.
In July 2022, projections were reduced by about ten-fold to GHS 611 million.
The levy faced stiff opposition from the Minority in Parliament and was generally unpopular with Ghanaians.
An Afro-Barometer survey showed that three-fourths of Ghanaians disapproved of the e-levy, including 67 percent who “strongly disapproved” of it, local media house, citinewsroom reported.
This review is the second for the levy, after initially being pegged at 1.75 percent before the government reduced it in a compromise amid protests against it.
The levy was eventually implemented in May 2022.