The Ghanaian Parliament has approved a new electronic transaction tax which the government says will help raise $900m in much-needed revenue but which has sparked widespread popular criticism.
The Minority staged a walkout during the second reading of the proposal. They walked out after the Minority Leader leader Haruna Iddrisu said the NDC MPs remain united in opposing the policy.
Contributing to the E-levy debate on the floor of the House, he described the policy proposal as punitive which will further increase “the high cost of doing business in the country.”
“E-levy is the nuisance of nuisance tax,” he said, adding that “businesses are suffering under your watch. We are united that we will not support E-levy, we will not vote for E-levy.”
Finance Minister Ken Ofori-Atta on Tuesday, March 29 moved a motion for the passage of the E-levy in Parliament after the third reading in the House..
“I, therefore, move the motion” for the passage of the E-levy, he said.
Obuasi West MP Kwaku Kwarteng seconded the motion.
However, just before he finished making his statement Minority Leader Haruna Iddrisu rose and said they could not deliberate on it because they did have access to the report. His position was supported by Tamale Central lawmaker Murtala Mohammed.
Ruling on the matter, Speaker Alban Bagbin said, “The copies of the report are being distributed now, I don’t think it is proper for us to suspend sitting, I will give you time to read the report to make a meaningful contribution.”
The E-levy bill will introduce a 1.5 percent tax on electronic money transfers and transactions.
President Nana Akufo-Addo’s government has said the move will help address problems from unemployment to Ghana’s high public debt.
But for many Ghanaians, the tax represents yet another burden as they are already struggling with high living costs heightened by soaring fuel prices due to the Ukraine crisis.
“The Electronic Transfer Levy duly read today after the consideration stage has been passed,” Alban Bagbin, the speaker of parliament said.
Earlier, Finance Minister Ken Ofori-Atta said 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.
Before they walked out of the debate, opposition legislators dismissed the new tax as unfair.
“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.
“What is the crime of Ghanaians that now the government wants to use their pockets as collateral?”
Ghana is struggling to revive its economy from the fallout of the coronavirus pandemic and its high public debt is a burden. Earlier this week, it reopened its land and sea borders after a two-year closure as it lifted some coronavirus restrictions in an attempt to bolster its flagging economy.
Shortly after the bill was passed, the Minority leader Hon. Haruna Idrissu said they will challenge the decision at the Supreme Court.
Speaking with the media, he said the Majority side did not have the 137 members present in the chamber to constitute a voting quorum. He sighted the absence of Hon. Adjoa Sarfoa and one other MP who was believed to be attended to by the Ambulance outside to buttress his claim.
