In a significant development for Ghana’s fiscal landscape, the government has announced that it generated GH¢1.19 billion from the controversial Electronic Transaction Levy (E-Levy) in 2023. The announcement was made by Honorable John Kumah, Minister of Finance, in a press briefing earlier today.
The E-Levy, which came into effect in 2022 amidst widespread debate and opposition, imposes a 1.75% tax on electronic transactions. Its implementation sparked concerns among citizens and businesses alike regarding its potential impact on the economy and digital financial transactions.
However, Honorable John Kumah hailed the revenue generated from the E-Levy as a testament to its effectiveness in bolstering the government’s revenue streams. He emphasized that the funds generated will be crucial for funding key government initiatives and infrastructure projects aimed at driving economic growth and development.
Despite initial skepticism and resistance from some quarters, the government has stood firm on its commitment to implementing the E-Levy as part of its broader fiscal policy objectives. The revenue generated from the levy is expected to provide much-needed support for government spending in critical sectors such as healthcare, education, and infrastructure.
Hon. John Kumah also highlighted the government’s efforts to address concerns raised by stakeholders regarding the E-Levy. He emphasized ongoing dialogues and consultations aimed at refining the levy’s implementation to ensure fairness and minimize adverse effects on businesses and consumers.
The announcement of GH¢1.19 billion in revenue from the E-Levy underscores the government’s determination to harness digital taxation as a viable source of revenue in an increasingly digitized economy. As Ghana continues to navigate economic challenges and pursue sustainable development goals, the E-Levy’s role in revenue generation and fiscal management is poised to remain a subject of significant scrutiny and debate in the coming years.
story filed by: Nana Kwaku Duah
