Ghana: Reduce E-Levy to 0.1 Percent to Revamp Digital Economy – Ghana Telecommunications Chamber

The Chief Executive Officer of the Ghana Telecommunications Chamber has called for the reduction of the electronic transactions levy (E-levy) from 1.5 per cent to 0.1 per cent.

According to Dr Ken Ashigbey, the introduction of the e-levy at 1.5 per cent had proven counter productive to both the government and the development of Gha-na’s digital economy.

He that while calling for a total scrap of explained the tax measure would be insen-sitive considering the government’s dire need for money amidst economic turmoil, reducing it to 0.1 per cent would revamp the digital economy thus generating more revenue for government.

Speaking on JoyNews’ PM Express Busi-ness Edition on Thursday, he said, “Our proposition is the fact that, you know, they should scrap it. But we need to be real, the government needs money at this particular stage. The deficit position is not good for the industry, it affects the industry, and it’s one of the things that would account for the depreciation of the cedi.

He said “the best thing to do is to reduce the level. Some in the industry have talked about 0.5, but I have said that the best thing to do is to do 0.1 per cent.”

He added that while the government reduced the rate, it should also place a cap on it.

Dr Ken Ashigbey suggested that trans-actions that were 5,000 cedis and above should only attract a fixed e-levy rate to attract more large transactions on mobile money platforms.

According to him, the current cap-less system made it most undesirable to transact business with large sums of money via digital platforms.