The introduction of the E-Levy bill which will impose a 1.75% tax on electronic transactions in Ghana has gotten some pushback from the public including the E-Commerce Association Of Ghana.
The association stated in a press release that even though it’s not against the government trying to generate revenue, the group states that there will be several negative consequences on e-commerce and other affiliated industries in Ghana. The association listed seven negative consequences including:
- Potential of eroding all the gains made by the government’s digitalization agenda and a major U-turn to the government’s vision of a cash-lite economy
- Sending the largely unbanked population back to the days of financial exclusion
- A negative toll on the use of digital payments as compared to the “cash is king” era
- Slow down on the development of e-commerce in Ghana as most payments are made through mobile wallets and fintech platforms today
- Slow down on the development of e-commerce in Ghana as most payments are made through mobile wallets and fintech platforms today
- Reduction in online sales resulting in tax reduction to the government
- Return to increased cash transactions, compromising the safety of delivery riders, etc
- Los of jobs in the eCommerce and fintech industries, etc
The association further stated that the Ministry of Finance needs to engage with stakeholders on the e-levy and discuss either the possible reduction or suspension of the levy.
