DailyGuide, a pro-NPP newspaper in its January 27, 2022 front page said the NPP’s proposed “E-Levy Found In NDC 2020” saying “The ‘E-Levy’ policy proposal which the NDC did not name at the time, was captured on Page 99 on point 8.7 under Financial Inclusion and Electronic Payments (FINTECH) in their 2020 People’s Manifesto.”
The paper also reported that in what appears similar to the E-Levy, the NDC had proposed among other things that the next NDC government “will introduce a uniform transaction fee policy to guide the electronic payments industry.”
They also said the next NDC government will “work with merchants to encourage their clients to pay for goods and services electronically.”
But responding swiftly to the publication and the claims, the Dean of the University of Cape Coast School of Business, Prof. John Gatsi in an article posted on his Facebook page school the NPP and DailyGuide on what the NDC’s “uniform transaction fee policy to guide the electronic payments industry.” means.
“It is sad that less premium is put on the consultation. I have read the 2020 manifesto of the NDC and NPP. In my opinion, the 2020 manifesto of the NDC was received by Ghanaians including the NPP as the hope for the country resulting in massive votes for the NDC.” – Prof. Gatsi said
“On page 99 where financial inclusion and electronic payments are presented, an average reader will understand that this is about further promoting the effectiveness of financial inclusion and ensuring broad-based use of electronic payments to step up the efforts at achieving cashless economic transactions. At 8.7(c) & (d) where it states “the NDC government will introduce uniform transaction fee policy to guide the electronic payments industry and work with merchants to encourage their clients to pay for goods and services electronically”, has nothing to do with E-levy. It has everything to do with deepening the use of electronic payments to achieve an enhanced cashless transactions regime.” – He added
He explained that “E-levy is not the same as uniform fee charged by telcos when a platform is used for a transaction Uniform transaction fee for the industry is not the same as E-levy which is designed to raise revenue to pay interest on loans taken with a greater burden on the finances of the country. Uniform fees mean if you undertake a transaction on the platform of MTN the fees charge should be the same when doing so with Vodafone or Tigo. It has nothing to do with revenue measures for the government.”
According to him, the “E-levy is a revenue conduit for the government as proposed in the 2022 budget and rejected by Ghanaians. Uniform transaction fees are charged by the telcos, E-levy is to be charged by the NPP government at 1.75% .”
The e-levy since its announcement by the Finance Minister in the 2020 Budget Statement has attracted huge condemnation with the Parliament rejecting the budget leading to the suspension on the passage of its bill following a physical confrontation between the NDC and NPP MPs in parliament.
The Bill will return to the house as the MPs have resumed seating.
Read Prof. Gatsi’s full statement:
NDC Never proposed E-levy in 2020 Manifesto: genuine consultations good for governance- Prof, John Gatsi
Ghanaians are hopeful that the government will take the opportunity provided to engage critical stakeholders to reduce the rate of the E-levy and change the threshold to appeal to Ghanaians.
It is sad that less premium is put on the consultation. I have read the 2020 manifesto of the NDC and NPP. In my opinion, the 2020 manifesto of the NDC was received by Ghanaians including the NPP as the hope for the country resulting in massive votes for the NDC.
The taxation regime of the NDC under the fiscal policy and strategy from page 21 is focused on using taxation as an incentive for entrepreneurship, business growth, and preservation of household incomes. Page 23 provides several tax cuts to enhance productivity, exports, entrepreneurship, and jobs for all.
Promotion of financial inclusion and use of payment platforms is not the same as E-levy
On page 99 where financial inclusion and electronic payments are presented, an average reader will understand that this is about further promoting the effectiveness of financial inclusion and ensuring broad-based use of electronic payments to step up the efforts at achieving cashless economic transactions. At 8.7(c) & (d) where it states “the NDC government will introduce uniform transaction fee policy to guide the electronic payments industry and work with merchants to encourage their clients to pay for goods and services electronically”, has nothing to do with E-levy. It has everything to do with deepening the use of electronic payments to achieve an enhanced cashless transactions regime.
E-levy is not the same as uniform fee charged by telcos when a platform is used for a transaction Uniform transaction fee for the industry is not the same as E-levy which is designed to raise revenue to pay interest on loans taken with a greater burden on the finances of the country. Uniform fees mean if you undertake a transaction on the platform of MTN the fees charge should be the same when doing so with Vodafone or Tigo. It has nothing to do with revenue measures for the government.
E-levy is a revenue conduit for the government as proposed in the 2022 budget and rejected by Ghanaians. Uniform transaction fees are charged by the telcos, E-levy is to be charged by the NPP government at 1.75% .
The uniform transaction fee is to promote participation and use of electronic payment platforms to achieve cashless transactions with fairness to clients. E-levy stands to truncate participation and threatens the interest of clients.
The two are just not the same. Stakeholder respect is good for our democracy.
