A tax analyst, Dr. Abdallah Ali-Nakyea, is of the view that the government’s proposed 1.75% tax on electronic financial transactions was not well-thought through.
According to him, tax policymaking is a process and should not be rushed.
He wants the government to withdraw the proposition, consult all stakeholders and return with a more comprehensive and acceptable one.
Speaking on the Citi Breakfast Show on Monday, November 22, 2021, Dr. Abdallah Ali-Nakyea said “these are early days yet. For me, that has been our challenge with tax policymaking in the country. Tax-policy making is a process and not an event, so when you come out with such a policy, on the face of it is stated that there will be a 1.75% e-levy on the value. That is the simple interpretation anyone will give.”
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The 1.75% tax on electronic financial transactions was proposed in the 2022 budget statement presented before Parliament by the Finance Minister, Ken Ofori-Atta on Wednesday, November 17, 2021.
The Minister explained that the tax measure was to raise revenue to support the job creation initiatives, construction of road infrastructure, cybersecurity, and digital infrastructure.
Ken Ofori-Atta was hopeful that the proposal will come into full force from February 2022.
Various stakeholders including those in the telecommunications sector have also raised concerns about the policy
The Minority caucus in Parliament has also vowed to kick against the proposal.
