How do we give farmers subsidies without E-levy? – Agric Minister defends new tax policy

Government to impose 1.75% levy on electronic transactions

NDC fights government over new tax policy

Scrapping of E-levy will affect other areas of the economy, says Agric Minister

Dr Owusu Afriyie Akoto, the Minister for Agriculture, has defended the government’s introduction of a new levy on all electronic transactions.

Dubbed the E-levy, the government announced in the 2022 budget statement and economic policy that it intends to collect some 1.75% off every transaction conducted electronically, including Mobile Money transfers.

The policy has been rejected by many citizens, including the opposition National Democratic Congress and their caucus making up the minority side of the current parliament.

But according to the minister for agriculture, it has become necessary for the government to impose the E-levy due to a shortfall in revenue generated from international trade.

“We are facing problems with revenue collection in Ghana. Just like everywhere else because international trades shrunk. We get most of our government revenue from international trade – imports and exports. That is why it has become necessary for this government to look for alternative sources of revenue to close the gap, hence the introduction of the levy,” the Agric Minister said during a visit to a government warehouse at Gambaga in the North East Region.

According to the minister, the entrenched position taken by the opposition NDC against the policy puts other areas of national development, including governments subsidisation of fertiliser for farmers, at risk.

“The opposition (NDC) is making the electronic levy a big issue. What we don’t realise is that it’s affecting other areas. So if we remove the levy, where are we going to find the money to give subsidies to farmers,” the minister questioned. Read Full Story