According to the E-Commerce Association of Ghana (eCAG), the implementation of the 1.5 percent electronic transaction levy, often known as the E-levy, is suffocating the developing e-commerce industry and digital financial ecosystem.
The group wants the government to think about imposing a 1.5 percent E-levy on their operations.
According to the E-Commerce Association of Ghana, the 1.5 percent E-levy on mobile money, online shopping, and other digital transactions is undermining achievements gained in developing a thriving e-commerce business, financial inclusion, and a digitalized economy.
The E-levy, according to the group, has raised the cost of doing business for its members, prompting E-commerce businesses to contemplate migrating to other West African nations with more favorable tax regimes.
"We don't want an instance where the government keeps increasing the E-levy and sees it as an easy method to raise money," says Paul Asinor, Executive Director of the Ghana E-Commerce Association. We want to put a stop to it right now in the budget because it will have a negative impact on our
business. If the price of
He urged the government to consult with members of the industry before analyzing the impact of the e-levy in the mid-year budget presentation.
He raised concern that the Ministry of Finance did not consult with key players in the e-commerce sector before to implementing a sensitive tax policy like the E-levy.
"We believe that the government should bring us in to discuss a variety of issues impacting the industry. This e-commerce sector is a thriving industry that may generate significant revenue for the government if operations in the sector are simplified "he told Joy News.
He added that they will be made costly, discouraging consumers from utilizing digital and online payment services.
He stated that a national program should be implemented to construct
