Danquah Institute has released a press statement reacting to claims, discussions, and misinformation purported by some media houses that, the Institute has asked the government to suspend the e-tax for broader consultation.
In a press release, the institute noted that it has not asked the government to suspend the e-tax which was read in the 2022 budget statement on Wednesday 17,2021 by Finance Minister, Ken Ofori-Atta.
According to the Institute, they hold a firm position that the e-levy is appropriate, right, timely and innovative, which would provide a broad-based platform for government to raise needed revenue.
Full statement below:
The E-Levy is the most innovative tax in the 2022 Budget- Danquah Institute
It has come to the notice of the Danquah Institute that some media houses have chosen to misreport the discussions made on the e-levy in our press briefing held on Wednesday 24th November 2021. We wish for it to be known that Danquah Institute has not asked the government to suspend the e-tax for broader consultations as has been reported.
The Institute firmly holds the position that the e-levy is appropriate, right, timely, and is an innovative tax. The Danquah Institute wishes to reiterate its position on the introduction of the levy on all electronic transactions to widen the tax net and to rope in the informal sector, as a truly commendable initiative.
In our brief, we pointed out how research indicates that phenomenal growth and resilience occurred in the communications sector even in the midst of the Covid-19 pandemic. We also indicated that from projections made, the government will be able to raise revenue from the initiative. The government is looking to make 6.9 billion from Electronic Transactions Levy (E-levy) in 2022 alone.
Comparing this figure with what the government is projected to get as import duty on all imports projected to come into the country in 2022 (i.e. 9 billion as duties levied on all imports that will come into the country) the e-levy is a powerful means for the government to raise revenue. The levy, therefore, provides a broad-based platform for government to raise needed revenue.
It will not go to enrich the service provider but will be going into government coffers to support entrepreneurship, pay for our roads and other developmental projects, and all that it has been earmarked to do.
For the avoidance of doubt, the Danquah Institute stated that the e-levy is a powerful tax revenue raising handle, and government should be able to implement it for that purpose. DI also commended the Government for making the e-levy pro-poor.
Source:dailyghanaianguide
