A former Minister of Finance, Seth Terkper, has said that the introduction of the controversial Electronic Transfer Levy (E-levy) might lead to the collapse of the digital industry in the country.
According to him, the rationale and approach being employed by the government to implement the E-levy in Ghana is not backed by law.
“Yes, the digital economy is being taxed globally, but are we using existing tax instrument to tax them which is another way of broadening the tax base or we are importing a levy with a defect.
“Ghana has a well-structured tax so if you work and earn income you are taxed. Either as an employee, as a business you pay corporate income tax or profit tax. If you make capital gain, there is capital gain tax which is structured,” Mr. Terkper told Francis Abban on the Morning Starr Tuesday whiles commenting on President Akufo-Addo’s interview with BBC.
The Former Finance Minister also asked the government to tell Ghanaians the context in the global tax law within which they are applying the E-levy.
“If you say E-levy is taxing an industry, are we targeting an industry and therefore it is fair to tax the industry with E-levy, an infant industry,” he quizzed.
GhanaFeed.com
