Prime News Ghana

Gov't is free to utilise E-Levy revenue despite court case - Godfred Dame 

By Justice Kofi Bimpeh
 Godfred Dame 
Godfred Dame 
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Attorney General Godfred Dame says the government is free to utilise E-Levy revenue despite a court case against its constitutionality.

 He explained that the court did not make any order directing how the revenue collected from E-Levy should be disbursed.

"The court indicated that the injunction is dismissed meaning that there is nothing preventing the GRA from collecting the revenue in the first place."

"Secondly, no order was made by the court directing how the revenue collected today to be disbursed. So the government is free to utilise the revenue for the developmental activity and for the various project it has promised the people of Ghana."

The Supreme Court yesterday unanimously dismissed the injunction application filed by three members of the Minority caucus in Parliament which sought to block the implementation of the Electronic Transfer Levy (E-levy).

The MPs–Haruna Iddrisu, Mahama Ayariga and Samuel Okudzeto Ablakwa– filed the injunction application on Tuesday, April 19, following the passage of the bill on Tuesday, March 29, 2022, despite a walkout by the Minority MPs.

They had sought to stop the government from implementing the levy until an earlier case they filed to challenge the passage of the law is determined by the apex court.

The Minority MPs contended that the legal threshold for passage of such a bill was not met before it was passed.

Meanwhile, the Ghana Revenue Authority has already started implementing the 1.5% charge on mobile money and other electronic cash transactions.

The Supreme Court on Wednesday, May 4, 2022, thus ordered the Ghana Revenue Authority to keep accurate records of all e-levy deductions to enable a refund to payees if it is later determined that the law was passed unconstitutionally.

The court said the Republic would suffer a great deal if government is temporarily stopped from deducting the levy from electronic transactions.

It however noted that mechanisms do exist within the current tax regime to refund payees who have either over-paid or wrongfully paid, and that must be taken advantage of.

The Court was composed of Nene Amegatcher as President, Her Ladyship Mariama Owusu, His Lordship Professor Ashie Kotey, Her Ladyship Getrude Torkornoo, Her Ladyship Lovelace Johnson, His Lordship Emmanuel Yony Kulendi and Her Ladyship Professor Henrietta Mensah Bonsu.