Ghana’s National Assembly has approved a new tax on electronic transactions. The government says that the bill will help raise $900 million in revenue and address the problems of unemployment and high public debt.
Known as the E-levy, the bill will introduce a 1.5% taxation on electronic money transfers and transactions (mobile money transfers, bank transfers, etc).
The bill now only awaits the President’s assent.
Ghana is trying to revive its economy from the adversities 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.
Last month, the Ghana Revenue Authority (GRA) announced plans of making GHC 2.7 Billion in taxes from betting and gaming companies, and GH¢1 billion from the likes of Facebook, Google, Netflix, Twitter, Instagram, WhatsApp and Tiktok, which are largely stationed outside the country but profit from its citizens and registered institutions.
This is part of efforts to broaden the tax net to cover all institutions that profit from the economy using the numerous online and other electronic platforms.
See Also:
