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Opposition frowns as parliament approves ‘controversial’ E-Levy in Ghana

Published

3 years ago

March 30, 2022

The legislature in Ghana has approved a new contested tax on electronic transactions which will introduce a 1.5 percent taxation on electronic money transfers and according to the government, help raise $900m in much-needed revenue.

The new tax, which is known as the E-levy has sparked widespread popular criticism in the West African country.

Ghana’s Minister for Finance and Economic Planning, Ken Ofori-Atta in the 2022 budget statement and economic policy that was presented before parliament in November 2021 revealed the government’s intention to tax all electronic transactions in the informal sector to cover the tax net.

Opposition legislators however staged a walkout of debates while the majority went on to pass the bill into act.

“The Electronic Transfer Levy duly read today after the consideration stage has been passed,” Alban Bagbin, the speaker of parliament said.

Before they walking out of the debate however, opposition legislators dismissed the new tax as unfair.

A lawmaker from the opposition, Isaac Adongo said “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?”

“What is the crime of Ghanaians that now the government wants to use their pockets as collateral?” Adongo remarked.

The newly passed E-levy would cover all inward remittances (which would be paid by the recipient), all person-to-person (P2P) mobile transactions (which includes sending of funds to another account, payment for goods and services, payment of utilities, all POS/Merchant payments.

A number of African countries have expanded the scope of their indirect taxes to cover digital services, but only a few have thus far implemented some form of direct digital services tax that applies to non-residents with no physical presence in their respective countries.

Earlier, this month, africanewswatch.com reported that Rwanda like Nigeria and Zimbabwe announced plans to tax online services and digital companies consumed within the country.

Related Topics:E-levy Featured Ghana President Nana Akufo-Addo

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Moroccan annual inflation rises to 0.8% in November

Published

22 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”