The report that the Ghana Federation of Labour wants the Minority in Parliament to stand their grounds in opposing the government’s proposed 1.75 per cent levy on mobile money and other electronic in the 2022 budget is one of the leading stories in the Ghanaian press on Wednesday.
The Graphic reports that the Ghana Federation of Labour wants the Minority in Parliament to stand their grounds in opposing the government’s proposed 1.75 per cent levy on mobile money and other electronic in the 2022 budget.
According to the Federation, the E-Levy will further worsen the plight of Ghanaians if allowed the pass, pointing out that “Sentiments on the ground are strong, public anger is building towards the political elite particularly government, which is at the center of the controversy.”
In a statement issued on Tuesday, December 7, 2021, the Secretary General of the Federation, Abraham Koomson, called on all stakeholders—Civil Society Organisations, religious bodies, and Ghanaians as a whole to speak out and join the “condemnation to save this nation for all and future generation.”
It will be recalled that the Minister of Finance, Ken Ofori-Atta, on Wednesday proposed an E-Levy (Electronic Transaction Levy) on mobile money and other electronic transactions as part of efforts by the government to raise revenue to prosecute its development agenda.
He said when effective, the levy will not affect people whose monthly transactions totaled less than GH¢3,000.
He said the levy would be called Electronic Transaction Levy or E-Levy and a portion of the proceeds will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure, among others.
The newspaper says that Parliament yesterday accepted the modification of the 2022 Budget Statement and Economic Policy of the government.
The acceptance by the House followed the laying of the revised budget statement that contained key concessions that address the key concerns expressed by the public, the Minority in Parliament and employers over the 2022 budget.
The document also spells out the government’s intention to abandon the Agyapa Royalties transaction, an allocation of GH¢10 million for feasibility and engineering studies for coastal communities, including Keta and its environs that were recently affected by tidal waves, as well as incorporating correctional statements relating to Aker Energy, among other things.
The document, which was laid by a Clerk of Parliament, was presented to the Office of the Speaker of Parliament by the Minister of Finance, Mr Ken Ofori-Atta, last Monday.
Soon after it was laid, the First Deputy Speaker, Mr Joseph Osei-Owusu, who presided over proceedings, drew the House’s attention to the fact that the Minister of Finance, when moving the motion on the budget on November 17, 2021, had asked the House to approve it subject to modification.
“Whether you call them concession or what, he is proposing modification and that is what is being laid to the House.
So it is not anything that is surprising to us,” he said.
He directed the modified policy statement, as tabled in the House, to be annexed to the original budget policy statement to allow the various committees to consider them during discussions on budget estimates.
The Ghanaian Times reports that the new tax measures introduced in the 2022 budget will increase the country’s tax to Gross Domestic Ratio (GDP) to 16.5 per cent, Finance Minister, Ken Ofori-Atta, has said.
The country’s current tax to GDP Ratio stands at 12 per cent, which falls below the Sub-Saharan Africa average of 16.5 per cent.
Tax to GDP Ratio basically means the value of tax compared to the value of goods and services produced in the country within a year.
Finance Minister, Ken Ofori-Atta, announced an Electronic Transaction Levy (E-Levy) in the 2022 budget, which is projected to raise GHC6.9 billion in 2022 fiscal year.
Speaking at a press conference on the 2022 budget in Accra on Monday, Mr Ofori-Atta said “these statistics are a poor reflection on the country and highlight the need to change the narrative. We cannot continue to depend on such a low tax base to generate adequate revenue, service and reduce our debt, to build our infrastructure (roads) and to create needed jobs for our youth.”
He said the government was determined to enhance domestic revenue mobilisation to reduce borrowing and growing public debt, adding that “The essence of our proposal on the E-Levy is to widen the tax net and generate the required revenue to support entrepreneurship, youth employment, build our infrastructure (especially roads) and reduce our debt.”
Mr Ofori-Atta said out of about 18 million potential income taxpayers, only 2.4 million persons (approximately eight per cent of the total population) were registered as personal income taxpayers as of August 2021.
The newspaper says that Vice President of Sierra Leone, Dr Mohammed Julie Jalloh, undertook a day’s official working visit to Ghana’s Ministry of Energy in Accra.
It formed part of a two-day official visit to Ghana to foster collaboration between the two countries and how to provide, reliable, quality and affordable energy services to both countries.
He was accompanied by Alhaji Kanja Sesay, Minister of Energy Sierra Leone, Mrs Francess Anderson, Sierra Leonean High Commissioner to Ghana, Mr Cyril Grant, Technical Advisor and Sulemana Abubakar, Deputy Director at the Ministry of Energy, Sierra Leone.
They were welcomed to the Ministry by Mr Mohammed Amin Adam, a Deputy Minister of Energy and his two other deputy ministers, Andrew Egyapa Mercer and Owuraku Aidoo.
In his welcome address, Mr Adam recalled the long standing bilateral relationship that existed between Ghana and Sierra Leone and pledged the former’s commitment towards their common interest.
He explained that the Energy Ministry remained the heartbeat of the country’s economy and government was doing all it could to enable it play that role effectively and efficiently.
Mr Adam said the visit by the Vice President and his delegation amply demonstrated that both countries held its relationship dearly.
“Learning from each other is a matter of course, because apart from getting us to know each other and being connected to each other, it also promotes South-South co-operation,” he said.
Mr Adam said it was important to learn from each other rather than people with different context and environment.
GIK/APA