The Finance Ministry says all the processes for the collection of the proposed Electronic levy (e-levy) on mobile money transactions, bank transfers and inward remittances will be done by the Ghana Revenue Authority (GRA).
The Ministry, in a statement, said, “GRA will manage all discussions to ensure full deployment of their current platforms and resources for the collection of the e-levy.”
This follows discussions that government should drop the allocation of GH¢241,933,000 for the e-transaction levy services to an alleged private company.
The statement said, “the Ministry of Finance wishes to state that these allegations are all untrue.”
Quoting an earlier statement made by the Finance Minister, Mr Ken Ofori-Atta, on the subject, it noted that, “we do have an understanding with the Ghana Revenue Authority, which uses up to 3 percent of the money it raises for ensuring that they can make such collections.”
“The GH¢241 million is, therefore, a reserve that is intended to be put aside to facilitate GRA’s collection of these resources,” the statement said.”
“Additionally, typically when we have new tax measures, there is the issue of refunds, and we usually make some compensation for that, sometimes 6 percent or so of the value to ensure that if those refunds come, we are able to pay for them.”
“So, in essence, this really will be to back up GRA in a way to ensure that all the problems that people envisage and the difficulties other countries have had will be mitigated in Ghana, so we
should be in readiness to support that,” the statement added.
The issue about the GH¢241 million set aside for revenue assurance for the electronic levy deductions was first raised last week by the Member of Parliament for North Tongu, Samuel Okudzeto Ablakwa.
According to Ablakwa, the allocation is needless and does not pass any test of accountability.
“We take the view that over the last four years, the Ghanaian taxpayer has been burdened with billions of cedis in the name of revenue assurance contracts and arrangements and so you can speak to the KelniGVG and the rest, and they are very costly…. We should by now be having very adequate and reliable systems if we are getting value for money for all of these arrangements. We do not need another entity to be granted such a colossal amount in the name of revenue assurance,” he said.
Ablakwa said, “we shall be demanding full disclosure in Parliament on this apparent sweetheart deal. Taxing the poor to make the rich richer. This is most unconscionable.”
Ignore Media Publication on Ghc241M E-Levy Transaction Services
1. The attention of the Ministry of Finance has been drawn to social media publications claiming that government has dropped the allocation of GHC241,933,000 for the E Transaction Levy Services in the 2022 Budget and it will, therefore, not appear in the Appropriations Bill.
2. Additionally, the Ministry is aware of allegations making the rounds that a private company has been awarded a contract to collect the E-Levy. Another allegation is that the services of the said private company have now been abrogated.
3. The Ministry of Finance wish to state that these allegations are all untrue.
4. The Ghana Revenue Authority (GRA) is the state agency mandated to provide for the collection services, the cost of which shall not exceed the standard of revenue mobilisation as has always been the practice. This standard indicative cost is what is outlined in the budget. GRA will manage all discussions to ensure full deployment of their current platforms and resources for the collection of the E-Levy.
5. On 6th December 2021, the Hon. Minister for Finance provided full clarification on the earmarking of ¢241m as the E-levy services fee. For the avoidance of doubt, and to prevent further misinformation, we reproduce the relevant sections of the Minister’s statement.
6. “We do have an understanding with the Ghana Revenue Authority which uses up to 3% of the money it raises for ensuring that they can make such collections. The ¢241 million is, therefore, a reserve that is intended to be put aside to facilitate GRA’s collection of these resources”, to quote the Minister.
7. “Additionally, typically when we have new tax measures, there is the issue of refunds and we usually make some compensation for that, sometimes 6% or so of the value to ensure that if those refunds come, we are able to pay for them”, the Minister added.
8. “So, in essence, this really will be to back up GRA in a way to ensure that all the problems that people envisage and the difficulties other countries have had will be mitigated in Ghana, so we should be in readiness to support that.”
9. We wish to reiterate that, the E-Transaction Levy remains one of the efficient means by which Government would be able to raise the needed revenue to support the economic development programmes for 2022. We count on your support.
ISSUED BY THE PUBLIC RELATIONS UNIT MINISTRY OF FINANCE
