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There was no quorum; passage of E-levy unconstitutional – Minority

by Ahmed Kabore
March 29, 2022
in News, Top Story
Reading Time: 3 mins read
There was no quorum; passage of E-levy unconstitutional – Minority
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The Minority in Parliament says its decision to stage a walkout during the debate for the passage of the Electronic Transfer Levy (E-Levy) was to cripple attempts for a quorum in the House.

The leader of the caucus said his side clearly strategized to frustrate the Majority’s push for the passage of the Bill into law.

Speaking during a press engagement shortly after the House passed the E-levy Bill, Haruna Iddrisu said the passage is illegal and unconstitutional because the Members present at the time fell short of the required 138 quorum under Article 104 (1) of the 1992 constitution, as affirmed recently by the Supreme Court.

He also alleged that Majority MP for Dome-Kwabenya, Sarah Adwoa Safo was not in the House.

“We simply walked out to disable the majority to have a voting quorum. They were simply less than 137. I am using 137 because conspicuously, everyone in the world knows that Hon. Adwoa Safo was not present. Additionally, we know that there was an ambulance within the precincts of parliament and the person purported to have been in the ambulance was not present in the chamber for the purpose of voting, therefore every decision they took with 136 flies as a sin against the ruling of the Supreme Court.”

Parliament passed the Electronic Transfer Levy in the absence of the Minority MPs, who had walked out before the Bill was considered at the second reading stage.

The Minority had complained that it had been taken by surprise by the unexpected consideration of the levy.

The E-levy was not listed in Parliament’s business statement for this week. The Minority MPs later walked out of Parliament before the second reading of the Bill after debating it.

Amendments
All the proposed amendments standing in the name of some Minority MPs were withdrawn because none of them was present to move those amendments in their name.

The Speaker of Parliament, Alban Bagbin, said he was surprised by the Minority walkout but indicated that it would not affect the course of proceedings.

The levy, which was amended from 1.75 percent to 1.5 percent today, Tuesday, March 29, 2022, will be a tax on electronic transactions, which includes mobile-money payments.

The charge will apply to electronic transactions that are more than GH¢100 on a daily basis.

Critics of the proposal have warned that this new levy will negatively impact the Fintech space, as well as hurt low-income people and those outside the formal banking sector.

The levy, which was amended from 1.75 percent to 1.5 percent today, Tuesday, March 29, 2022, will be a tax on electronic transactions, which includes mobile-money payments.

What is E-levy?
The charge will apply to electronic transactions that are more than GH¢100 on a daily basis.

Critics of the proposal have warned that this new levy will negatively impact the Fintech space, as well as hurt low-income people and those outside the formal banking sector.

The levy has been the source of tension in Parliament since it was introduced in the 2022 budget. The tensions culminated in a scuffle between lawmakers in Parliament in December 2021.

The government has, however, argued the levy would widen the tax net and that could raise an extra GH¢6.9 billion in 2022. There are also concerns that the government may securitise proceeds from the e-levy to raise extra revenue.

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