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Deputy Minister of Finance, Hon. John Kumah clarifies misinformation about the proposed E-levy

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, Deputy Minister of Finance, Hon. John Kumah clarifies misinformation about the proposed E-levy, GlitzEmpire
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Ghana’s finance minister Ken Ofori-Atta announced that the government intends to introduce an electronic transaction levy (e-levy) in the 2022 budget. The initial response to the announcement of the levy has been one of displeasure and fears but Deputy Minister, Hon. John Kumah has clarified some misinformation about the levy.The proposed levy, which will come into effect on 1st February 2022, is a charge of 1.75% of the value of electronic transactions. It covers mobile money payments, bank transfers, merchant payments, and inward remittances.Addressing concerns of Ghanaians about the e-levy in an engagement with some bloggers and influencers at a meeting yesterday, Hon. John Kumah asserted that the introduction of the e-levy was not to rip Ghanaians of their hard-earned money but to generate internal revenue to improve development in the country. To support this claim, he revealed that government cleared and reduced 5 existing levies including the toll booth levy to reduce the taxes citizens pay.Below are three corrections to pieces of misinformation about the proposed e-levy offered by the Deputy Finance Minister.THE E-LEVY IS NOT APPLICABLE TO ALL MOBILE MONEY TRANSFERSThe majority of Ghanaians resort to mobile money transfers because it is the most efficient and cost-effective means of transferring money and is widely accessible in Ghana. Hence, mobile money transfer was the first and major concern of Ghanaians in regards to the proposed e-levy. However, NOT ALL MOBILE MONEY TRANSFERS will be taxed under the e-levy.The levy will cover the following;Mobile Money Transfers: sending money from your wallet to another person’s wallet or bank account using mobile money;Bank to Mobile Money Transfers: Transfers from a bank account to another person’s mobile money accountMobile Money Merchant Payments: when you pay for a service or a product from a merchant using your mobile money account;The levy will NOT cover the following;Daily Free Limit: Every person will be able to send up to GHS100 / day without payment of the levy. For example, if Kofi sends GHS 50 to his sister in the morning and sends another GHS 50 (GHS 100 in total) to his brother in the afternoon, he will not pay the E-levy. However, any other payment on the day after this threshold will attract the e-levy.Transfers between your own accounts: If you are moving money between your own mobile money accounts you will not be charged the E-LEVY. For example, If you transfer money from your registered mobile money account with MTN to your Vodafone Cash bearing the same name, the e-levy will not be charged on the transfer.Cash deposits: Depositing money into one’s personal mobile money account will not be charged with the e-levy. For example, if you deposit 1,000gh through a mobile money agent into your account, no e-levy charge will be taken and you will receive 1,000gh in your account.THE E-LEVY IS NOT APPLICABLE TO BANK TRANSFERS AND CHEQUESAlthough the E-levy will be applied to the originator of a transaction on an electronic payment platform like online banking, it only covers payments for goods and or services using bank payments, Debit/Credit Card or alternative bank payment channels.The levy will not be applied to Bank transfers and cheques from one bank account to another.Similarly, money transfers between one’s own account in different banks will not be taxed. For example, by transferring money from one’s Fidelity bank account to his/her Stanbic Bank account, the e-levy will not be applied to the amount transferred.ONLY THE RECEIVER OF AN INWARD REMITTANCE WILL BE CHARGED THE E-LEVYAn inward remittance is a money sent from a foreign country and received by the payee into their bank account. Under the new proposed e-levy, the remitter who sends money to the recipient’s bank account will NOT be charged. Only the beneficiary of the internal remittance will be charged 1.75% on the value of the amount received.Although the e-levy is yet to be approved in parliament, Deputy-Minister Finance, John Kumah assured that Finance ministry is in constant discussions with key stakeholders and is taking into consideration the concerns of Ghanaians to make necessary changes to the levy before it passed.He also affirmed that the e-levy will be efficiently collected by the government through the Ghana Revenue Authority in collaboration with the Telcos, Fintechs and Financial Institutions.On how issues and challenges about the levy will be addressed, Hon. John Kumah said a 24-hour service center will be set up to help individuals who might be experience challenges and call lines will be announced soon.Watch Hon. John Kumah speaks on the benefits of the E-levy below.


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Prince Nelson Opoku (Genius) is Ghanaian - Nigerian professional entertainment Blogger and Entrepreneur. He is the Founder & Owner of Nelson Genius Limited, Glitz Empire Media Networks and Ghana Beat Media Inc.

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Malawi government appoints Mike Tyson Cannabis Ambassador

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, Malawi government appoints Mike Tyson Cannabis Ambassador, GlitzEmpire
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Mike Tyson is an individual with a rich and varied history over the course of his life, some of incredibly positive and some of it not so, and now the former Heavyweight champion has become the cannabis ambassador to Malawi.The Ministry of Agriculture of Malawi sent Tyson a letter asking him to take the aforementioned position in the south-eastern African nation, which legalised the medicinal and industrial use of cannabis in 2020, in order to promote economic growth and diversify its economy as the tobacco market declined.Malawi relied on tobacco for a long time, and it represents around 13 percent of the nation’s GDP and 60 percent of its foreign exchange earnings. With the tobacco industry having fallen, the Malawian government decided that the cultivation of cannabis as an alternative would help the country from an economic standpoint.Tyson has grown synonymous within the field of cannabis use, mainly due to his podcast, and this is why he is being turned to by Malawi in their hour of need.However, the drug is still illegal on a recreational basis, and there are in fact significant levels of resistance to changing that measure.The technical knowledge for effective cannabis cultivation is lacking, whilst farmers have been critical of high government tariffs placed on the sale of the plant.However, the Malawi government believes it is worthwhile persevering with the endeavour as it will ultimately bolster their economy.Tyson has been asked to help the local farmers with regards to cultivating the plant, as well as changing the opinion of the drug amongst the population of the nation.“Malawi may not be able to do it alone, as the industry is complex and requires collaboration, therefore I would like to name you Mr. Mike Tyson, Malawi’s Cannabis Ambassador,” the letter from the Malawi government read.
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Gov’t pays GH¢5.7bn of debts owed SSNIT — Starr Fm

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, Gov’t pays GH¢5.7bn of debts owed SSNIT — Starr Fm, GlitzEmpire
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The government has since 2017 made payment of GH¢5.77 billion to clear part of the social security contributions owed to SSNIT, the latest update from the Social Security and National Insurance Trust (SSNIT) has shown.
Delays in the payment of due contributions by the government have been cited in the actuarial valuation reports as hampering the scheme’s level of investible funds. Indebtedness by the government to the Trust continues to hurt the scheme’s compliance rates and long-term sustainability.
SSNIT in its update assured that management has not relented in its efforts to retrieve all arrears owed the Trust by employers to improve the sustainability of the Scheme.
“It must be noted that government has since 2017 paid GH¢5.77billion to clear social security contributions owed by successive governments. SSNIT continues to actively engage government, the largest employer, to pay the contributions of its employees,” the Trust highlighted.
As of September this year, 7,951 criminal cases were pending in court against defaulting employers. Likewise, over 500 employers – including the government – have arranged for terms of the settlement.
According to the Africa Centre for Retirement Research (ACRR), indebtedness to the Trust almost doubled in 2018; given that delay in contribution, payment has been assessed to have a tremendous impact on the long-term cost of the scheme. Over 75 per cent of indebtedness to the Trust is by the government.
“It is imperative that government settles its outstanding indebtedness to the Trust and sticks to the payment schedule as stipulated by section 63 of Act 766. As well, this will present a good example for private sector employers to follow,” ACRR said in its research report.
Private-sector indebtedness
Over GH¢230million remains outstanding in debt by the private sector as of September 2021 to SSNIT. This is expected to go up further if the Trust retrieves all outstanding contribution reports and updates inspections on all establishments.
The Director-General of the SSNIT, Dr. John Ofori-Tenkorang, said the Trust takes no delight in taking legal action against employers, but it has become necessary for SSNIT to fulfil its obligation to pay retirement benefits.
SSNIT also assured all stakeholders and the public that the Scheme presently has enough reserves to pay all accruing benefits due to members and their validly nominated dependants.
“The Trust, therefore, assures all members and the public that it will continue to ensure prudent management of funds to enhance the long-term sustainability of the Scheme,” it said.
Source: B&FT

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Ghana (Covid-19 Updates)

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