Government has not contracted any private company, GRA will collect E-Levy – Ministry of Finance

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The Ministry of Finance has denied allegations that a private company has been awarded a contract to raise funds generated by the controversial electronic transaction tax (E-levy).

In a statement issued on Monday, the ministry clarified that the Ghana Revenue Authority (GRA), as a state agency, is the only institution to provide the collection services at a fee which will not exceed the standard cost of collection. revenue mobilization.

According to the Ministry of Finance, “GRA will manage all discussions to ensure the full deployment of their current platforms and resources for collecting the E-Levy.”

In addition, the ministry denied claims that a ¢241,933,000 allocation for electronic transaction tax (E-levy) in the government’s 2022 budget was removed from the final budget bill.

North Tongu MP Samuel Okudzeto Ablakwa made the revelation on his Facebook timeline on Saturday.

However, in the statement, the Ministry of Finance wrote: “these allegations are all false”.

He added that on Monday, December 6, Finance Minister Ken Ofori-Atta “provided full clarification on the allocation of ¢241 million as a charge for electronic direct debit services.”

Since Mr. Ofori-Atta announced the government’s decision to introduce a 1.75% tax on all electronic transactions from January 1, 2022, the country has been divided over whether to accept the initiative.

Although the government has argued that it is an innovative way to generate revenue, opponents including the minority in parliament and some economists argue that the move will make Ghanaians’ hardship worse.

FOR IMMEDIATE RELEASE

SKIP MEDIA POST ON E-LEVY GHC241M TRANSACTION SERVICES

1. The attention of the Ministry of Finance has been drawn to social media posts claiming that the government has discontinued the allocation of GHC 241,933,000 for electronic transaction levy services in the 2022 budget and that it does not therefore will not appear in the supply bill.

2. In addition, the Department is aware of allegations circulating that a private company has been awarded a contract to collect E-Levy. Another allegation is that the services of said private company have now been terminated.

3. The Ministry of Finance wishes to state that these allegations are all false.

4. The Ghana Revenue Authority (GRA) is the state agency responsible for providing collection services, the cost of which must not exceed the revenue mobilization standard, as has always been the practice. This standard indicative cost corresponds to what is indicated in the budget. GRA will manage all discussions to ensure full deployment of their current E-Levy collection platforms and resources.

5. On December 6, 2021, the Hon. The Minister of Finance has provided full clarification on the allocation of ¢241 million as a charge for direct debit services. For the avoidance of doubt and to avoid further misinformation, we reproduce the relevant sections of the Minister’s statement.

6. “We have an agreement with the Ghana Revenue Authority which uses up to 3% of the money they collect to ensure they can carry out such collections. The 241 million euros therefore constitute a reserve intended to be set aside to facilitate the collection of these resources by GRA”, to quote the Minister.

7. “Also usually when we have new tax measures there is the issue of refunds and we usually do compensation for that, sometimes around 6% of the value to make sure that if those refunds come in we are able to pay for them,” the minister added.

8. “So in essence it will really be about supporting the GRA in a way that will ensure that all the problems that people are looking at and the difficulties that other countries are having will be alleviated in Ghana so we should be prepared to support that. .”

9. We would like to reiterate that the electronic transaction tax remains one of the effective means by which the government would be able to raise the necessary revenues to support economic development programs for 2022. We count on your support.

ISSUED BY THE PUBLIC RELATIONS UNIT MINISTRY OF FINANCE


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