Sam George, a member of parliament from Ningo-Prampram, has called the Electronic Transaction Levy (e-levy) a "failed tax policy."
He claims that the fee has significantly reduced the use of mobile money and other electronic transactions.
He claims that the government's resistance to enacting the levy is to blame for this.
The Economic Management Team met with important participants in the e-Levy implementation last week, and it became clear that our country is in crisis. The 'alumi' that we were promised will be the 'golden egg' instead, he claimed.
"Transaction volumes have decreased by around 18 percent month over month and transaction values have decreased by almost 40 percent," he continued. We warned the administration about this, but they ignored our warnings.
His remark comes in response to a tweet sent on Monday by Gabby Otchere-Darko, who revealed that over two months after the Electronic Transactions Levy (e-levyadoption, )'s it had only brought in less than $60 million.
He claimed that the tax fell short of what the administration had hoped it would accomplish.
The Ningo-Prampram MP tweeted the following in response: "We sounded the warning, we were dubbed naysayers and doom-mongers. We were labelled Jeremiahs and tax haters when we urged against the tax. A failing tax policy is the e-Levy tax. No amount of spin will alter the reality.
Government revenue is expected to total $4,2 billion in 7 months in 2022, from May to December, the legislator stated. This amounts to about 600 million every month. A conservative estimate of a daily accrual would be $20 million.
The Ghana Revenue Authority and government spokespeople were jubilant that the e-Levy was bringing in more over $1 million per day from one charging organisation during the first week of its operation.
As that charging body accounted for about 70% of transaction volumes, I was quick to warn against premature excitement, but sadly, I was insulted and told I didn't want to see government thrive.
He said that in May 2022, the government only succeeded in collecting roughly 1.8 million every day, totaling less than 60 million for the whole month.
He said that this represented just 9% of the anticipated income.
Sam George: "E-levy is a failing tax policy."
They are trying to assign responsibility to everyone but themselves, which is the behaviour of extremely unskilled yet haughty people. The chickens have gone home to roost, and everyone is to blame, from the Charging Entities to the Mobile Money Agents.
Additionally, he emphasised that the e-Levy continues to be "a government driven Ponzi scam."
"The rollback of the digital accomplishments and strides that we had made as a Nation under President Rawlings is the worst setback in this terrible catastrophe. What has given us this poisoned concoction is a combination of blatant ineptitude, ardent corruption, and a heavy dosage of arrogance.
He also said that he hasn't made any momo purchases in the last two months.