The Deputy Minister of Finance, Dr John Kumah, has been fielding answers to some critical questions regarding the just-introduced E-Levy that was captured in the 2022 Budget Statement which was read by the Finance Minister, Ken Ofori Atta, in Parliament last Wednesday, 17th November, 2021.
Contrary to widely speculated falsities, Dr. John Kumah explained that the E-levy would not affect ATM transactions because you are not sending, you are withdrawing, and also that if one transfers money from his current account to his savings account, it would not be taxed, even if it was from bank account to MoMo, as long as its same person, no charges would apply.
Transfers between ones accounts in different banks will not be taxed, but as to whether the levy would apply to quick loan payouts and repayments, the Deputy Finance Minister said that would be made public when the bill on the E-levy is laid before Parliament.
Transactions at merchant locations that are done using a Debit/Credit Card, QR Code or alternative payment channel, the Deputy Minister disclosed, would be charged the levy. “E-LEVY will also be charged to the customer for payments for goods and or services using Debit/Credit Card, QR Code or alternative payment channel,” he added.
Asked about What government will do if the levy causes a return to an increased use of cash, the Member of Parliament for Ejusu in the Ashanti region intimated that “Calculations of people who will stop using MOMO as a result of the tax has been catered for which is normal for tax that is introduced. However the opportunity cost returning to the use of cash is more than the tax that has to be paid and so over time we expect more people to still use momo.”
Government, he disclosed, conducted surveys before introducing the e-levy and that the process of consulting the telecos was a continuous process and would be featured heavily as Government prepares to design the bill for the levy. There was even a meeting between all the Telcos NCA, MoF this past week.
Out of the E-levy, the Minister assured during a meeting with some selected editors this week that Government would pay for the revenue it will have generated if it had still operated the toll booth and add up any amount as required to ensure our roads are fixed aggressively.
