E-levy not efficient in dealing with economic challenges; it taxes savings – Terkper
“E-levy not efficient since it taxes savings & worse, worsens distortion of general expdx tax (VAT). 2nd, the ‘straight levies’ (GETFund/NHIL) block credit & refunds to VAT-registered firms. Hence (3rd), as with all 10 plus new & retained levies since 2017, it adds to cost & prices,”
A Former Finance Minister Mr Seth Terkper has said the e-levy tax is not efficient in dealing with the challenges facing the economy.
In his view, the e-levy taxes savings of Ghanaians.
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“E-levy not efficient since it taxes savings & worse, worsens distortion of general expdx tax (VAT). 2nd, the ‘straight levies’ (GETFund/NHIL) block credit & refunds to VAT-registered firms. Hence (3rd), as with all 10 plus new & retained levies since 2017, it adds to cost & prices,” he tweeted on Monday April 19.
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Meanwhile, a member of the e-Levy Technical Committee at the Ghana Revenue Authority (GRA) Isaac Amoako, has said no e-levy applies to salaries paid from companies to individual bank account.
He said this on the Key Points on TV3 Saturday April 16, with host Dzifa Bampoh.
He also said ATM withdrawals do not attract e-levy.
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The e-levy deductions will start May thus year, the Finance Minister Ken Ofori-Atta earlier revealed.
He said that is the assurance he has been given by the Controller and Accountant General (CAGD) and the Ghana Revenue Authority (GRA), who will be the revenue collectors.
“We had some meetings with Controller and Accountant Generals Department (CAGD) and the Ghana Revenue Authority (GRA) and they have said right at the beginning of May they should be able to put their system together,” he told TV3’s Roland Walker in Parliament after President Nana Addo Dankwa Akufo-Addo delivered the State of the Nation Address on Wednesday March 30.
The E-levy was passed by Parliament on Tuesday March 29 after the Minority had walked out from Parliament.
Source: 3news.com|Ghana
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