The Roads and Highways Minister, Kwasi Amoako-Attah, has denied saying his government will securitise revenues accruing from the proposed Electronic Transactions Levy (E-levy) for roads construction.
Several media reports have suggested that the minister while speaking on the floor of Parliament, indicated the government intended to securities the proposed levy for infrastructure.
But the minister, while responding to the reports on Asempa FM’s Ekosii Sen programme denied the attributions.
Below is a transcription of what the Minister said on the floor of the house:
The government, in its wisdom, has proposed the passage of the E-levy to bring in more revenue to build the road infrastructure of our country for all of us.
Government is looking forward to the passage of the E-levy that will bring in greater revenue that will be securitised and then used to raise a bond if possible, to build the road sector infrastructure.
The Roads and Highways Minister added that it is the government’s policy is to bring in a better form of collection because the toll revenue is built in the proposed E-levy.
Watch the video below for more of what he said:
Minister’s comment on Ekosiisen
Clarifying his statement on Ekosiisen, Mr Amoako-Atta said his comments were taken out of context, noting he said the levy “may be securitised”.
The minister described his colleagues who failed to understand his comments on the floor of the house as “lacking intelligence”.
Play the attached audio for his detailed response.
E-Levy
The Finance Minister, Ken Ofori-Atta, during the presentation of the 2022 budget to parliament announced the government’s intention to introduce an Electronic Transactions Levy (E-levy).
The Levy, he said, was being introduced to “widen the tax net and rope in the informal sector.”
The proposed Levy, which was expected to come into effect in January 2022, charges 1.75% on the value of electronic transactions.
It covers mobile money payments, bank transfers, merchant payments, and inward remittances. There is an exemption for transactions up to GH¢100 per day.
Although the government has argued that it is an innovative way to generate revenue, scores of citizens and stakeholders have expressed varied sentiments on its appropriateness, with many standing firmly against it.
Even though others have argued in support of the Levy, a section of the populace believe that the 1.75% E-levy is an insensitive tax policy that will deepen the already prevailing hardship in the country.