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There should be a gradual approach to increasing revenue than imposition – Badu Aboagye

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Chief Executive of Ghana National Chamber of Commerce and Industry, Mark Badu Aboagye has called for a gradual approach in revenue generation in the country.

Speaking in an interview on PM Express on Tuesday, he said Government should adopt a gradual approach instead of using radical methods in revenue generation.

This he said was because “the revenue projections for us is too aggressive and of course it is going to have an effect on businesses who are going to pay the taxes.”

“Tax revenue with GDP ratio now is about 12%, they want to move it from 12% to 15%, that 3% is huge. The question you need to ask yourself is who are those going to pay the taxes and then I mean income taxes are there but then the large component of the tax revenue comes from businesses. That is why you need to look at the budget, the tax aspect of it largely is going to be borne by business, “he added.

Mr Aboagye indicated that although he is not entirely against revenue generation, he, however, wants the government to take a second look at the businesses that are paying the imposed taxes.

This comment come after the Finance Minister, Ken Ofori-Atta during the presentation of the 2022 budget in Parliament, projected an introduction of an electronic transaction levy (E-levy).

The E-levy involves a charge of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances.

According to Badu Aboagye the 1.75% is generally going to affect business operation in the country by reducing their profit levels and capital.

He said businesses expected a wider consultation approach of the levy so as to pave way for businesses to make an input into “how it [ E-levy] is going to affect their businesses going forward and how they can even revise it or put it at a level that would be convenient for all.”

He added that “if you look at the MOMO, it has grown not because of the individual but because of the huge transaction that businesses are doing… so if you take 1.75% just by an individual who is paying a little bit over GHS 100 as the threshold the money may look small, but for a business is constantly sending money through MOMO cumulatively is a big cost.”



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