NDC’s position on ‘draconian’ 1.75% e-levy remain unchanged – Muntaka

December 4, 2021
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The largest opposition National Democratic Congress (NDC) Caucus in Parliament has reiterated its opposition to the 1.75% e-levy after it said the government rejected a compromise.

In a statement signed by Hon. Muntaka Mubarak, MP for Asawase and Chief Whip, the caucus maintained that the levy is “regressive, punitive and draconian.”

“For the avoidance of doubt, the position of the NDC Caucus in Parliament right from the outset of the 2022 Budget debate has been that the 1.75% E-Levy government is seeking to impose is regressive, punitive and draconian, and that same must be suspended,” a part of the statement said.

“Surprisingly, despite the good faith demonstrated by the NDC team recognising the importance of the Budget to the economy, business and households, the government side out-rightly rejected our proposal for a revision of the E-levy, leading to a breakdown of the discussions.

We wish to state unequivocally that no concrete decision or agreement has been reached between government and the NDC Caucus in Parliament on this matter,” it added.

Haruna Iddrisu says Minority are ready to accept 1%

The Minority Leader in Parliament, Haruna Iddrisu, had indicated that his side would accept a reduction of the proposed e-levy from 1.75 percent to 1 percent.

Leader of the National Democratic Congress (NDC) in Parliament, Haruna Iddrisu, has finally backed down on the E-levy rejection.

He says his side now accepts the proposed Electronic Transaction Levy in the 2022 Budget Statement and Economic Policy of Government.

According to him, E-Levy is for the good of the country.

“On E-Levy, a week ago, I was no, no, no, we won’t accept the E-Levy but having listened to officials in government, including the Minister for Finance and Charles Adu Boahen, I was convinced to accept a departure of my original no to accepting a 1 per cent E-Levy for the good of the Ghanaian people,” Mr Iddrisu said at the launch of the 10 anniversary of the Ghana Telecommunications Chamber today in Accra.

“And therefore if government is able to make overtures and reach out and say that we want to peg the electronic levy at one per cent, I would have a difficulty convincing my constituency but I take full responsibility because that should be our contribution to fiscal consolidation and our contribution to ensuring that the economy doesn’t collapse on any of us going into the future”.

Adjustment

Mr Iddrisu said he also advocated for the E-Levy to be imposed on mobile money and other electronic transactions that exceeded GH¢300, an adjustment on the GH¢100 that was proposed by the government in the 2022 Budget and Economic Policy Statement.

He said initially, he had wanted the E-Levy to be imposed on only transactions that exceeded GH¢500.

Read below the full statement from the NDC Caucus in Parliament

THE POSITION OF THE NDC CAUCUS IN PARLIAMENT ON THE 1.75% E-LEVY PROPOSED BY GOVERNMENT IN THE 2022 BUDGET STATEMENT.

The NDC Caucus in Parliament wishes to assure Ghanaians that it will continue to use every legitimate and lawful channel to resist the 1.75% E-Levy government is seeking to impose on the ordinary Ghanaian.

For the avoidance of doubt, the position of the NDC Caucus in Parliament right from the outset of the 2022 Budget debate has been that the 1.75% E-Levy government is seeking to impose is regressive, punitive and draconian, and that same must be suspended.

The Minority Caucus has vigorously championed this position in Parliament and in the media space to draw Government’s attention to our demands.

Subsequent to our rejection of the Budget on 26th November 2021, government has sought to engage the NDC Caucus in a series of discussions towards finding an amicable solution to the impasse.

Surprisingly, despite the good faith demonstrated by the NDC team recognising the importance of the Budget to the economy, business and households, the government side out-rightly rejected our proposal for a revision of the E-levy, leading to a breakdown of the discussions.

We wish to state unequivocally that no concrete decision or agreement has been reached between government and the NDC Caucus in Parliament on this matter.

As we speak, government’s so-called concessions are unknown to us, and we have no clear indication that they intend to seriously consider any of the proposals that have come up.

Under the circumstance, we wish to state that the NDC Caucus will maintain its original position as stated earlier.

Signed,

Hon. Muntaka Mubarak

MP for Asawase and Chief Whip.

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