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 finance ecosystem.
The group wants the government to think about imposing a 1.5 percent E-levy on their activities.
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According to the E-Commerce Association of Ghana, the 1.5 percent E-levy on mobile money, online shopping, and other digital transactions is eroding gains 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 consider migrating to other West African countries with more favorable tax regimes.
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According to Paul Asinor, Executive Director of the Ghana E-Commerce Association, “We don’t want to see a situation where the government keeps raising the E-levy because it’s a quick method to get cash. We want to put a stop to it right now in the budget because it will have a negative impact on our business. Businesses will eventually lower their investment and move outside where operations are less expensive if the cost of doing business continues to rise.”
He urged the government to consult with industry members before assessing the impact of the e-levy in the mid-year budget presentation.
He raised concern that the Ministry of Finance did not consult important e-commerce stakeholders before enacting a sensitive tax policy like the E-levy.
“We believe that the government should consult with us on a variety of matters that affect the industry. This e-commerce sector is a thriving industry that can bring in a lot of money for the government if activities in these sectors are streamlined “‘I told Joy News,’ he said.
They will be made more expensive, according to him, discouraging individuals from using digital and online payment services.
He suggested that a national policy be put in place to help the e-commerce sector grow and generate cash for the government.
“This is a lie because online enterprises may simply be monitored and forced to pay taxes.” I just explained what e-levy is and how it affects our business.
“We are aware of the low pay that online employees get, and we are working with the appropriate parties to address this.” He emphasized that “we will shortly conclude our proposals for the government to consider in developing a sustainable policy.”