ACCRA, Ghana
A fight has broken out between lawmakers in Ghana’s parliament during a debate over a proposed tax on electronic transactions that has divided the house for weeks.
The 1.75% e-levy, which would include mobile
money payments, has been challenged by the opposition since it was first
proposed last month and held up the passing of the budget.
Members of parliament rushed to the front of
the chamber on Monday after the deputy speaker, Joseph Osei-Owusu, suggested
the tax be debated and voted upon under a hastened “urgency” procedure.
Some threw punches and grappled while others
restrained colleagues. A vote on whether to proceed with the procedure was
postponed to 18 January.
Haruna Iddrisu, the minority leader, said on
Tuesday: “We need to demonstrate to the country that our democracy is growing
and will not suffer some of these unacceptable sins and spectacles we have
witnessed on the floor.”
The finance minister, Ken Ofori-Atta, argued
that the levy would widen the tax net and raise an additional 6.9bn Ghanaian
cedi ($1.15bn) in 2022. But his proposal was met with boos and jeers in
parliament when it was announced.
Those opposed to the levy said it would
disproportionately affect lower-income people and those outside the formal
banking system who relied heavily on mobile money transfers, reducing overall
economic activity.
Ofori-Atta has promised to hold further
discussions with stakeholders about the levy.
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