- 20 Marks
MRB – OCT 2022 – L4 – Q4 – Repercussions of E-Levy on Digital Transformation in Rural Banks
Discuss the repercussions of the E-levy on digital transformation and savings mobilization in Rural and Community Banks
Question
The Electronic Transaction Levy (E-levy) of a 1.5% taxation on electronic transactions, came into effect on the 1st of May, 2022. The levy applies to mobile money payments, bank transfers, merchant payments, and inward remittances (MoF 2022 Budget Highlights). The aim was to capture the informal sector and providing an opportunity for every Ghanaian to contribute towards nation building and also ensure that the hidden, submerged or informal economy is brought within the remit of the formal economy. More specifically, the move was a necessary economic tool to widen the tax net which would increase the country’s tax to GDP.
Discuss the repercussions of the levy on the digital transformation drive in Rural and Community Banks regarding the use of digital platforms in savings mobilization.
(20 Marks)
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