Skip to main content

Ghana’s Minority Lawmakers Reject Government Proposal to Tax Mobile Money Transactions

The Ghanaian government’s proposal to introduce a 1.75% levy on digital transactions was recently rejected by a minority of lawmakers who insist the new tax derails efforts to help increase the number of adults that are financially included.

The Digital Transactions Tax

A minority of lawmakers in the Ghana legislature recently rejected a government proposal to introduce a 1.75% levy on digital transactions including mobile-money payments. The lawmakers argued such a levy would slow down the country’s plan to increase the proportion of financially included adults from 58% to 75% by 2023.

According to a report, the proposed levy, which was tabled in parliament by Finance Minister Ken Ofori-Atta, was (or is) expected to become effective from February 2022. The Ghanaian government argues that the proposed levy would help reduce the country’s deficit from an estimated 12.1% of gross domestic product this year to 7.4% in 2022.

However, the minority lawmakers in Ghana’s hung parliament insist the levy will work against efforts to increase the number of adults that are financially included. These lawmakers have so far refused to meet Ofori-Atta who, according to the report, is seeking to convince them to support his proposal.

Heated Proceedings

Meanwhile, following what the report called “heated proceedings,” lawmakers from the majority block walked out and this led to the adjournment of the debate to November 30. The report also said the refusal by the minority lawmakers to support the levy has frustrated lawmakers that back Ofori-Atta’s proposal.

The report quotes Majority Leader Osei Kyei-Mensah Bonsu, questioning the lawmakers’ refusal to support the levy. He asked:

The e-levy is the cornerstone of this budget. Where are we going to get the money to do the roads?

Ghana’s mobile money platforms whose transactions surged 82% to $91.9 billion in 2020 are now an indispensable part of the country’s payments infrastructure. In addition to making payments, the platforms are also used to access loans and to pay insurance premiums by Ghana’s unbanked population.

What are your thoughts about this story? Tell us what you think in the comments section below.



from Bitcoin News https://ift.tt/3p6ySRF
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more