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We Are Suffering From E-Levy – E-Commerce Association Cries

The implementation of the 1.5 percent electronic transaction levy popularly known as the E-levy is stifling the emerging e-commerce industry, and digital finance ecosystem, the E-Commerce Association of Ghana (eCAG) has said.

The group wants the government to think about imposing a 1.5 percent E-levy on their operations.
According to the E-Commerce Association of Ghana, the 1.5 percent E-levy on mobile money, online shopping, and other digital transactions is undermining achievements 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 contemplate migrating to other West African nations with more favorable tax regimes.

“We don’t want an instance where the government keeps increasing the E-levy and sees it as an easy method to raise money,” says Paul Asinor, Executive Director of the Ghana E-Commerce Association. 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 players 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 impact the industry. This e-commerce sector is a thriving industry that may bring in a lot of money for the government if operations in these sectors are simplified “‘I told Joy News,’ he added.

They will be made more expensive, according to him, discouraging individuals from utilizing 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.

“Because internet enterprises are readily regulated and forced to pay taxes, this notion is false. I just explained what e-levy is and how it affects our business.

“We are aware of the poor pay that online employees get, and we are working with the appropriate parties to address this issue. We will soon complete our proposals for the government to consider when developing a long-term policy “He was adamant.

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