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HomeNewsMinority wants e-levy rate reduced to 0.5% with ¢300 daily threshold

Minority wants e-levy rate reduced to 0.5% with ¢300 daily threshold

The Minority in Parliament has urged the government to further review the E-levy rate to 0.5 percent. The Minority Leader, Haruna Idrissu, who made the request said there should be a daily tax-free threshold of 300 cedis, adding that his caucus will push for that strongly in Parliament.

This comes after Finance Minister Ken Ofori-Atta announced last Thursday that the government would reduce the rate from 1.5 percent to 1 percent, and remove the 100 cedis tax-free daily threshold.That means any amount transferred is taxable. Speaking at the opening ceremony of the post budget workshop in the Volta Regional capital, Ho, Haruna Idrissu argued that the E-levy review as announced by the government will worsen the impact on the poor Ghanaian.

“We will subject it [the E-levy] to a further critical and thorough discussions as a caucus but without going into the scenarios, as you look at your scenarios, consider for say of 0.5% at a threshold of ¢300 as compared to what you have admitted of 1% at zero threshold,” the Tamale South MP said. The Minority, he said, was yet to take a decision on the proposed increase of the VAT rate by 2.5 percent which he warned may have terrible consequences on businesses.

However, the Finance Minister Ken Ofori-Atta said the measures have become important for domestic revenue mobilisation due to the closure of the international market to the government. According to him, these revenue measures are key to reviving the ailing economy.

Source: Myxyzonline.com



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