The Graduates Students' Association of Ghana (GRASAG), has lambasted the National Union of Ghana Students (NUGS) for endorsing the controversial e-levy policy announced in the 2022 budget by the Finance Minister.
In a press statement issued on Thursday, GRASAG says the position taken by NUGS does not reflect the sentiment of the general student body.
According to GRASAG, introduction of the e-levy will have negative repercussions on online businesses operated by the youths.
GRASAG is of the view that the levy may lead to the collapse of online businesses.
“The introduction of electronic transactions will have a negative effect on online businesses mostly owned by the youths who rely on electronic payment methods.”
This levy will make their products uncompetitive as they become more expensive in the eyes of the public, who will have to beat the additional 1.75% levy,” GRASAG said.
This comes after NUGS in a press conference on Thursday endorsed the e-levy policy saying, "it's a step in the right direction."
However, GRASAG believes that NUGS' position on the policy does not capture the interest of the entire student populace.
The Finance Minister, Ken Ofori-Atta, notified Ghanaians of a new levy to be charged on all transactions made electronically effective January 1, 2022.
He said this while reading the 2022 budget to Parliament on Wednesday, November 17, 2022.
According to him, it will be a 1.75 per cent levy to be imposed on electronic transactions including bank transfers and mobile money transactions.
He explained that a part of the proceeds of the tax will be used to tackle unemployment, support entrepreneurship, support digitalization, improve road infrastructure and also enhance security.
“It is becoming clear there exists the enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the ‘informal economy.”
“After considerable deliberations, government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the ‘Electronic Transaction Levy or E-Levy',” he said.
He added that the levy will not affect transactions that amount to 100ghc or less than that daily.
If the E-levy is approved by Parliament, it means that transferring money electronically is going to attract new charges.
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