The Ghanaian parliament on Tuesday gave approval to a new electronic transaction tax after the opposition walked out in protest, reported Africa News.
The E-levy bill, passed on Tuesday, will introduce a 1.5 percent tax on electronic money transfers and transactions.
President Nana Akufo-Addo’s government has said the tax will help raise $900m in much-needed revenue. The government claims that the move will help address problems from unemployment to Ghana’s high public debt.
The bill has sparked widespread popular criticism as many Ghanaians believe that the tax represents yet another burden when they are already struggling with high living costs heightened by soaring fuel prices due to the Ukraine crisis.
The Ghanaian legislators approved the law after the opposition minority walked out of the debate. The opposition legislators dismissed the new tax as unfair.
“The Electronic Transfer Levy duly read today after the consideration stage has been passed,” Alban Bagbin, the speaker of parliament said.
Finance Minister Ken Ofori-Atta had initially proposed the e-levy bill in November last year to widen the tax net.
The Ghanaian finance minister claimed that the government had already reduced the proposed tax from 1.75 percent to 1.5 percent after consultations, adding that it will bring in projected revenues of $927.5m.
But, the opposition was so fierce that it caused a brawl in parliament a month later. The critics believe the e-levy will push people with low income and small business owners out of the digital economy.
“The people have roundly rejected the e-levy and our constituents have told us to reject it, so why is the president imposing it on us?” said opposition NDC party parliamentarian Isaac Adongo.
Ghanaian President Nana Akufo-Addo is expected to assent to the bill before the tax gets finally imposed. The tax is expected to rake in close to ¢6 billion in tax revenue for the country.
