The Executive Director of Danquah Institute(DI) Dr. Antoinette Tsiboe-Darko has released a statement to debunk the malicious misrepresentation of the DI’s stated position on the proposed 1.75% Electronic Transaction Levy(a,k,a E-Levy).
Readers will recall that last Thursday, the Daily Graphic and some other media houses had reported that the DI had rather asked Government to tarry a while and engage in broader consultations before the introduction of the levy.
The reportage which appeared to be in sharp contrast to what was actually articulated by the DI at a press conference in Accra has elicited a quick rebuttal from its Executive Director.
Below is the full text of DI’s response:
“It has come to the notice of the Danquah Institute that some media houses have chosen to misreport the discussions made on the e-levy in our press briefing held on Wednesday 24th November, 2021. We wish for it to be known that Danquah Institute has not asked government to suspend the e-tax for broader consultations as has been reported.
The Institute firmly holds the position that the e-levy is appropriate, right, timely and is an innovative tax. The Danquah Institute wishes to reiterate its position on the introduction of the levy on all electronic transactions to widen the tax net and to rope in the informal sector, as a truly commendable initiative.
In our brief we pointed out how research indicates that phenomenal growth and resilience occurred in the communications sector even in the midst of the Covid-19 pandemic.
We also indicated that from projections made, government will be able to raise revenue from the initiative. Government is looking to make 6.9 billion from Electronic Transactions Levy (E-levy) in 2022 alone.
Comparing this figure with what government is projected to get as import duty on all imports projected to come into the country in 2022 (i.e. 9 billion as duties levied on all imports that will come into the country) the e-levy is a powerful means for the government to raise revenue.
The levy therefore provides a broad-based platform for government to raise needed revenue. It will not go to enrich the service provider, but will be going into government coffers to support entrepreneurship, pay for our roads and other developmental projects and all that it has been earmarked to do.
For avoidance of doubt, the Danquah Institute stated that the e-levy is a powerful tax revenue raising handle, and government should be able to implement it for that purpose. DI also commended the Government for making the e-levy pro-poor.”
