Kofi Adams, the member of parliament for the Buem constituency and minister designate for sports and recreation, has reiterated the government’s intention to do away with the E-Levy, pointing to its detrimental effects on the fintech sector and the country’s transition to a cashless economy.
Speaking on GHOne television, he described the difficulties the levy has caused and how the government plans to solve them.
“Promises have been made, and we intend to keep those promises,” he stated. “If anything comes up for further discussion, that will be a new thing that must be discussed. We will consult broadly to see how that must be managed. But for now, the promise is that E-Levy must go.”
Adams emphasized how using digital payment methods is discouraged by the E-Levy.
“The E-Levy hasn’t done anything to help. Despite being a revenue handling, it has had an impact on the fintech sector and the objective of implementing a cashless system, he clarified.
He provided a clear illustration of the existing situation, highlighting how the fee acts as a financial deterrent to digital payments.
“If you go to buy fuel and pay with mobile money, they will charge you more. But if I take physical cash and pay, I pay only the exact amount. Where is the motivation for you to go cashless?” he asked.
Adams also highlighted the unstated expenses associated with using actual currency. “Handling physical cash makes it dirty, and within the shortest possible time, that money has to be reprinted because it’s worn out. If you look at the Bank of Ghana, the cost of reprinting notes is so high that we end up spending more,” he said, urging for a better system.
“The E-Levy must go,” he reiterated. “The other taxes we have indicated will also go, but we will reduce some expenditures in certain areas to balance the situation” he stated.
Source:Mybrytfmonline.com/Joseph Asare
