Lands Minister, PAC Chair clash over E-Levy

Minister of Lands and Natural Resources, Samuel Abu Jinapor, yesterday had a heated encounter with Chairman of the Public Accounts Committee (PAC), James Klutse Avedzi, over the government’s proposed Electronic Transaction Levy (E-Levy) during the committee’s public hearing.

The Committee, earlier on Monday began sitting to consider the Auditor-General’s report on Public Accounts of Ministries, Departments and other agencies (MDAs) for the 2018 Financial Year.

The Chairman had raised concerns about MoMo accounts that the Administrator for Stool Lands, Maame Ama Edumadze Acquah, said they have created for agents collecting rents for the agency in the hinterland to ensure such funds are not kept too long in the hands of the collectors.

While saying the MoMo arrangement will work, Mr Klutse Avedzi however pointed to potential problems for the collectors if the E-Levy is approved because that will be a “hindrance for the collectors in terms of who would be expected to absorb the transaction costs to the levy”.

“Let’s hope that this MoMo works and if the amount… You know the E-Levy that is coming will be a hindrance to the MoMo but this government is determined to pass the E-Levy without considering things of this nature. So Madam Acquah, pray that the E-Levy doesn’t come so that your people can send the money to you through the MoMo,” he said.

Response

Reacting to his comments, the Lands Minister interjected the Chairman’s statement and profusely thanked him for admitting that the E-Levy is truly coming.

“I want to thank Mr James Klutse Avedzi for seeing the light, but the Administrator has made the point that the rate is at GH¢30. Mr. Chairman, as you know President Nana Akufo-Addo is so sensitive to the poor and vulnerable.

“Through his numerous policies of free education and several others, which are to cushion the poor, that is why the E-Levy does not affect any transfer below GH¢100. President Akufo-Addo’s policies have always been pro-poor unlike…But because I’m before you I can’t make any comparisons,” Mr Jinapor stated.

The Chairman, however, pointed out to the Minister the money collected daily is more than a GH¢100 and so if they need to transfer it in the event that the E-Levy is approved, they will be affected, asking that “who pays that E-Levy”.

To this end, Mr Jinapor argued that the intervention is required to build the national economy hence the reason government is not keen about it.

“It was thought through by the cabinet. It was thought through by the President and the E-Levy intervention is required just as it is happening in Kenya and in several countries cross the world. The E-Levy is intended to build our national economy that was hit by COVID-19, an economy that has been hit by global commodity prices, that intervention is never ever to punish the Ghanaian people and I believe you know that,” the Minister stated.

The Minister reiterated that the E-Levy will aid reconstruction of the country’s national economy for the benefit of the Ghanaian people by way of providing citizens with amenities like roads and healthcare, as well as creating decent number of jobs for the youth of this country.

He also pointed out that the contours and reach of the E-Levy will not affect such small transactions, adding that the Ministry of Finance had taken the trouble to go across the 16 regions of the country to hold town hall meetings with the public in sensitising them to ignore the propaganda and buy into it “for our collective benefit”.