MoMo Tax Proposal Smacks of Insensitivity – Fighters

The Financial Fighters League has reiterated its place that the E-levy proposal within the 2022 funds assertion is unfair enhance within the tax burden of common to low wage earners at our press convention on twenty second of November 2021.

The group stated the proposal smacks of insensitivity on the a part of politicians.

“The complicity of the NPP and NDC has performed and continues to play a major function in oppressing Ghanaians.
Slightly than auditing the ‘weird and opaque contracts’ which have precipitated ‘the abysmal monetary mess and disaster the nation has been in over time’ each events while in authorities have reached for extra taxes that penalise subsisting Africans on this unbalanced and unsustainable fiscal regime.

“Different latest occasions are clear proof of this hegemony; {that a} parliament with an excellent distribution of 137-137 was ready to move this funds buttresses our conviction that neither celebration exists to serve the pursuits of the residents of Ghana.

“The Financial Fighters League condemned the Momo Tax as an unfair enhance within the tax burden of common to low wage earners at
our press convention on twenty second of November 2021.

“We reiterate that the introduction of the Momo Tax demonstrates the insensitivity of the political institution to the plight of the common Ghanaian of their wrestle for respectable dwelling requirements and sustainable livelihoods,” a press release stated.

In the meantime, Finance Minister Ken Ofori Atta has stated whereas answering a query at a press convention in Accra on Wednesday January 19 on what the federal government’s Plan B is for the economic system and income era, that the plan is for the federal government to stay targeted and get the E-levy proposal via to make sure the home income mobilisation is robust.

He instructed the pressmen that there can’t be absolute settlement on authorities’s insurance policies.

“There is no such thing as a approach we are able to have absolute settlement.

“We’re going up by 40 per cent with reference to income mobilization after which expenditure can also be going up by 25 per cent. We now have all the time been excellent about with the ability to to chop down on expenditure appropriately after we don’t meet our goal.

“With this new daybreak of GRA exceeding targets, we anticipate that to proceed. With the brand new nationwide ID system we are actually 15.5 million individuals are going to be on their books.

“That’s what offers me the joy into the longer term as a result of once I learn the Fitch Report, you might be doubting that we are able to make our revenues , I’m assured that we are able to. They’re fearful that we cant come to the worldwide market , we’re saying its positive, we have now our SDRs that can suffice for the primary half after which we are going to work out one other methodology of getting the

“So plan B is to remain targeted and be sure that we get our E-levy via , be sure that our home income mobilization is string and that be, we don’t have to go the market.”

The E-levy proposal within the 2022 funds assertion has sharply divided parliament. The opposition MPs have rejected the proposal.

The Minority Chief Haruna Iddrisu stated the coverage proposal is a disincentive to the expansion of digital economic system.

To that finish, he stated, the Minority wouldn’t assist it.

Talking at a put up funds workshop in Ho on Saturday November 20, he stated “Mr Speaker, understandably, we see that the Minister of Finance seeks to introduce some measures together with the now popularly declared e-levy or digital levy  as some have fairly named it.

“Mr Speaker, our concern is whether or not the e-levy itself just isn’t and won’t be a disincentive to the expansion of digital economic system in our nation . We’re satisfied that the e-levy could as nicely even be a disincentive to funding  and a disincentive to personal sector improvement in our nation. We within the minority could not and won’t assist authorities  with the introduction of that individual e-levy . We’re unable to construct nationwide consensus  on that individual matter.”

Mr Ofori-Atta had introduced this levy to be charged by authorities in 2022 on all digital transactions to widen the tax web and twine within the casual sector.

“It’s changing into clear there exists monumental potential to extend tax revenues by bringing into the tax bracket, transactions that might be finest outlined as being undertaken within the ‘casual economic system’,” Mr Ofori-Atta noticed on Wednesday, November 17 as he introduced the 2022 funds assertion in Parliament.

“After appreciable deliberations, authorities has determined to put a levy on all digital transactions to widen the tax web and twine within the casual sector. This shall be often called the ‘Digital Transaction Levy or E-Levy’.”

He defined that the brand new E-levy will likely be a 1.75 per cent cost on all digital transactions protecting cellular cash funds, financial institution transfers, service provider funds and inward remittances to be borne by the sender besides inward remittances, which will likely be borne by the recipient.

It will, nonetheless, not have an effect on transactions that add as much as GH¢100 pr much less per day.

“A portion of the proceeds from the E-Levy will likely be used to assist entrepreneurship, youth employment, cyber safety, digital and highway infrastructure amongst others.”

This new levy is scheduled to begin Saturday, January 1, 2022.

In 2020, complete worth of transactions was estimated to be over GH¢500 million with cellular cash subscribers and customers rising by 16 p.c in 2019.

In accordance with a Financial institution of Ghana report, Ghana noticed a rise of over 120 p.c within the worth of digital transactions between February 2020 and February 2021 in comparison with 44 p.c for the interval February 2019 to February 2020 as a result of comfort they provide.

This was undoubtedly heightened by the arrival of Covid-19 particularly in the course of the lockdown.

Credit score: 3News