Ghana Parliament Approves Controversial Tax Bill

Ghana’s parliament approved a new 1.5% tax on electronic payments, known as the “e-levy”, after the opposition walked out in protest.

Finance Minister Ken Ofori-Atta proposed the e-levy in November to widen the tax net, but opposition was so fierce that it caused a brawl in parliament a month later. Critics believe the e-levy will price lower income people and small business owners out of the digital economy. 

Ruling MPs re-introduced the bill as a surprise on Tuesday, when many opposition MPs were not present, a move analysts have previously said would be one of the only ways for the tax to pass. The tax, which would cover mobile money payments, bank transfers, merchant payments, and inward remittances, could raise up to 6.9 billion Ghanaian cedi ($926 million) in 2022, according to official estimates. 

It was expected to be re-submitted next week, but parliament speaker Alban Bagbin said it should be treated as urgent business and fast-tracked it.