Ghana’s parliament rejects 2022 budget over e-tax

In an unprecedented move in Ghanaian politics, the country's parliament has rejected the government's 2022 budget proposal over the introduction of an electronic bank levy. The levy, set at 1.75 per cent on all electronic transactions starting from January, sparked heated debates among members of parliament from both the ruling and opposition parties. This rejection marks the first time in Ghana's history that a budget proposal has been turned down by parliament. The rejection came after the minority party strongly expressed concerns about specific elements in the budget, with the electronic levy being a key point of contention. In addition to the levy, there were also reservations raised regarding the benchmark value for imports, with fears that scrapping it could lead to increased costs for importing goods into the country. Despite the government's efforts to address these concerns, the rejection of the budget has left Ghana without a financial plan for the upcoming year. The rejection of the budget proposal has raised questions about the unity within parliament and the government's ability to secure support for its fiscal policies. Following the rejection, there is speculation that the finance minister will need to revise the budget and resubmit it for approval, a process that could further delay the implementation of key financial plans and programs. The rejection of the budget proposal reflects the growing discontent among lawmakers and the public over the government's economic policies and decisions. With the budget uncertainty looming, the future of Ghana's fiscal landscape remains uncertain.