Ranking member of Parliament’s finance committee, Cassiel Ato Forson, has warned that efforts to turn the economy into a cashless economy will be wiped out if the government implements the e-transaction tax.
The Minister of Finance, during the presentation of Budget 2022 and economic policy to Parliament on Wednesday, November 17, 2021, announced the introduction of a levy on electronic transactions, also known as E-Levy, in order to increase the country’s tax revenues.
“The government will charge an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments and inbound remittances, which will be the responsibility of the sender, to with the exception of incoming remittances, which will be the responsibility of the recipient. »Announced Ken Ofori-Atta.
But Cassiel Ato Forson believes the move is counterproductive to plans to make Ghana’s economy cashless.
According to him, Ghanaians would be forced to carry out transactions with cash.
“This budget will wipe out the cashless economy we are talking about. People are now going to keep their money at home. People are now going to trade with cash because any transaction you make with the bank, you are going to pay a digital tax.
Today we are faced with the situation that the very thing we are doing to help the cashless economy today we are erasing it all. I’m sad as a Ghanaian, ”Cassiel Ato Forson told host Evans Mensah on Joy FM’s Top Story Wednesday.
The former deputy finance minister added that the decision will also have far-reaching consequences for businesses.
“These taxes will introduce distortions in the economy. Businesses will suffer. Businesses take care of transfers and those transfers will increase the cost of doing business, as each transfer made by the business will pay 1.75%.
This cost will be passed on to their customers. It will last indefinitely and create distortions in the economy. This will be fine as long as the government does not get the money, ”added Cassiel Forson.
He says the minority in Parliament will not approve the levy.
Dr Forson insists that the Minority Caucus will reject any tax introduced to exacerbate the hardships faced by Ghanaians.
Previously, the legislator had criticized the government for having reversed the reference value on certain imported products.
He expressed concern about the prospects for increased prices of essential imported commodities.