2022 budget presents no hope to Ghanaians – Fighters

Finance Minister, Ken Ofori-Atta

The Economic Fighters League has rejected the 2022 budget statement persented to Parliament by the Finance Ken Ofori Atta.

They have also called on all Ghanaians to do same in rejecting the document.

The group has vowed to march to parliament on 26th November to against the budget.

Announcing the decision to protest at a press conference today Monday November 22 National Spokesperson for the group, Nii Aryee Opare described the budget as rip off.

“Having analyzed the 2022 budget we have come to the conclusion that the budget presents no hope for the for the people of and rather its proposed policies and measures will exacerbate the plight of the ordinary man and increase the hardship,” he said.

They are not the only group have have rejected portions of the budget statement.

The Leader Haruna Iddrisu, on behlf of his colleagues in Parliament, had also said the E-levy policy proposal in the 2022 budget statement is a disincentive to the growth of digital economy.

To that end, he said, the Minority will not support it.

Speaking at a post budget workshop in Ho on Saturday November 20, he said “Mr , understandably, we see that the Minister of Finance seeks to introduce some measures including the now popularly declared e-levy or digital levy  as some have quite named it.

“Mr Speaker, our concern is whether the e-levy itself is not and will not be a disincentive to the growth of digital economy in our country . We are convinced that the e-levy may as well even be a disincentive to investment  and a disincentive to private sector development in our country. We in the minority may not and will not support government  with the introduction of that particular e-levy . We are unable to build national consensus  on that particular matter.”

Finance Minister Ken Ofori-Atta announced a new levy to be charged by government in 2022 on all electronic transactions to widen the tax net and rope in the informal sector.

“It is becoming clear there exists enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the ‘informal economy',” Mr observed on Wednesday, November 17 as he presented the 2022 budget statement in Parliament.

“After considerable deliberations, government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the ‘Electronic Transaction Levy or E-Levy'.”

He explained that the new E-levy will be a 1.75 per cent charge on all electronic transactions covering payments, bank transfers, merchant payments and inward remittances to be borne by the sender except inward remittances, which will be borne by the recipient.

This will, however, not affect transactions that add up to GH¢100 pr less per day.

“A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others.”

This new levy is scheduled to start Saturday, January 1, 2022.

In 2020, total value of transactions was estimated to be over GH¢500 million with mobile subscribers and users growing by 16 percent in 2019.

According to a report, Ghana saw an increase of over 120 percent in the value of digital transactions between February 2020 and February 2021 compared to 44 percent for the period February 2019 to February 2020 due to the convenience they offer.

This was definitely heightened by the advent of -19 especially during the lockdown.

Source: 3news.com|Ghana

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