Ghana passes controversial tax bill after opposition walkout

Ghana is struggling to revive its economic system from the fallout of the coronavirus pandemic and the Russia-Ukraine battle.

Protesters maintain a banner throughout a protest in Accra, Ghana, on August 4, 2021. The protest goals to demand accountability, good governance, and higher residing situations from the federal government [File: Nipah Dennis/AFP]

The Ghanaian Parliament has authorized a brand new digital transaction tax which the federal government says will assist increase $900m in much-needed income however which has sparked widespread fashionable criticism.

The E-levy invoice, handed on Tuesday, will introduce a 1.5 p.c tax on digital cash transfers and transactions. President Nana Akufo-Addo’s authorities has stated the transfer will assist tackle issues from unemployment to Ghana’s excessive public debt.

However for a lot of Ghanaians, the tax represents yet one more burden as they're already combating excessive residing prices heightened by hovering gas costs because of the Ukraine disaster.

Legislators handed the legislation after the opposition minority walked out of the talk.

“The Digital Switch Levy duly learn right this moment after the consideration stage has been handed,” Alban Bagbin, the speaker of parliament stated.

Earlier, Finance Minister Ken Ofori-Atta stated the federal government had already decreased the proposed tax from 1.75 p.c to 1.5 p.c after consultations, including that it'll herald projected revenues of $927.5m.

Earlier than they walked out of the talk, opposition legislators dismissed the brand new tax as unfair.

“The individuals have roundly rejected the e-levy and our constituents have advised us to reject it, so why is the president imposing it on us?” stated opposition NDC get together parliamentarian Isaac Adongo.

“What's the crime of Ghanaians that now the federal government desires to make use of their pockets as collateral?”

Ghana is struggling to revive its economic system from the fallout of the coronavirus pandemic and its excessive public debt is a burden. Earlier this week, it reopened its land and sea borders after a two-year closure because it lifted some coronavirus restrictions in an try and bolster its flagging economic system.

The president and his ministers not too long ago additionally minimize their very own wages by 30 p.c, together with different measures they hope will assist generate $400m in financial savings for state coffers.