The Parliament of Ghana voted on Tuesday, March 29, the creation of a tax on electronic transactions. A highly contested text which had triggered social mobilization, but ardently defended by the government, which is trying to fill a large public deficit. The law, called “E-Levy”, imposes a 1.5% tax on electronic transactions, including mobile money payments, widely used in the country.
The initial bill, which provided for a tax of 1.75%, triggered an outcry in Ghana at the end of 2021, where residents say they are strangled by an ever more expensive cost of living since the crisis caused by the Covid-19 pandemic. In recent weeks, the economic difficulties have further worsened with the rise in the prices of fuels and other goods, linked to the Russian offensive in Ukraine.
In this period of global economic crisis, the government is urgently looking for new sources of revenue to fill a growing public deficit of more than 80% of GDP. According to the Minister of Finance, Ken Ofori-Atta, who spoke at the opening of the debates, this tax should bring in some 835 million euros for Ghana.
Lower salaries for the president and ministers
The law was passed by the presidential majority, the opposition parliamentarians having left the room before the vote to denounce a “unfair tax”they say. “Ghanaians have totally rejected this tax, so why is the president imposing it on us? », exclaimed to AFP an opposition parliamentarian, Isaaec Adongo. By the end of 2021, Ghana had seen a series of protests against the government. Many young people took to the streets to denounce the introduction of this tax and the difficult economic conditions they face.
Earlier this week, the country, increasingly strangled by the weight of its debt, announced the reopening of its land and sea borders, closed for two years due to the Covid-19 epidemic. The government hopes to revive the economy. He also announced on Friday a 30% cut in the salaries of the president and ministers.
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