Former Finance Minister Seth Terkper has denied reports suggesting that he supports the introduction of the E-levy.
The Chronicle in a publication headlined ‘Delay in Passing E-Levy Hurting 2022 Budget… Says Seth Terkper’, claimed Mr. Terkper “believes the E-levy as a means for revenue mobilization is a must”.
The chronicle further stated “the former Finance called Parliament to approve the E-levy as soon as possible”.
In rebuttal the former Finance Minister Seth Terkper said the Chronicle’s report is contrary to his publicly held stance on the E-levy.
In a statement, Mr Terkper said he has described the E-levy as “most nuisance of nuisance taxes” because it taxed “savings” in electronic wallets.
According to him such a move was akin to “Discriminating against savers using electronic ‘wallets’, instead of banks and pillows, to save.”
“This offends the principle of fairness in taxation,’’ he stated.
The former Finance minister further stated the E-levy would be “Compelling customers to pay tax on the “wallet” transfers but the same tax does not apply to those using cheques and other conventional means.”
Mr. Terkper who currently held a tax consultancy institution PFM Tax Africa said his stance against the E-levy has also been informed by the fact that it would be “Engaging in double or multiple taxation of savings that may have attracted the conventional taxes already.”
“Likely tax E-Levy on Loans in e-Wallets: The last point may go to such ridiculous extent as paying e-levy on business loans in a bank account, for which, the bank uses its “wallet” to make transfers to customers,” he stated.