Parliament finally passes 1.5% E-levy amid Minority walkout.

Parliament of Ghana.

The Electronic Transfer Levy was approved by Parliament in the absence of the Minority MPs, who walked out before the Bill was debated at the second reading stage.

The Minority had protested that the sudden levy discussion had caught them off guard.

The E-levy was not mentioned in this week's Parliamentary business statement. After, discussing the bill, the Minority MPs walked out of Parliament before the second reading.

All planned amendments in the names of a few Minority MPs were withdrawn since none of them were present to offer them.

The Speaker of Parliament, Alban Bagbin, expressed surprise at the departure by the Minority, but stated it would not disrupt the proceedings.

The fee, which was reduced from 1.75 percent to 1.5 percent today, March 29, 2022, will be a tax on electronic transactions, including mobile-money payments. The penalty will be applied to electronic transactions totaling more than GH100 each day.

Critics of the idea have warned that the new charge would harm the Fintech industry, as well as low-income persons and others who are not part of the official banking system.

Since it was established in the 2022 budget, the fee has been a cause of contention in Parliament. Tensions to a head in December 2021, when MPs fought in Parliament.

The government, on the other hand, claims that the charge would broaden the tax base, potentially raising an additional GH6.9 billion by 2022. There are also fears that the government may securitize e-levy profits to generate more money.

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