Punches thrown in Ghana parliament over electronic payments tax

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.