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Saturday, December 4, 2021

Trouble looms as MoMo agents reject new tax, new report » GhBase•com™

3News reports that some mobile money agents have rejected the introduction of the tax introduced on mobile money transactions by the government.

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Some of the aggrieved agents told TV3 thus;

“The telcos are already paying and you are coming to charge the vendor for it? How much are we making out of it? I am a graduate and I am doing this, how much do you think I am making? It is always based on commission basis.”

Another agent said “What they are deducting is not helping us but we are managing so it will be ok for them to manage the same levy they are taking so adding another one I am not sure it will help us.”

“So what happened to all the previous taxes we have been paying? We have a lot of them already. The thing is, you have made promises you need to fulfill you don’t have to drain me in order for you to fulfill,” another further indicated.

The Finance Minister Ken Ofori-Atta announced a new levy to be charged by government in 2022 on all electronic transactions to widen the tax net and rope in the informal sector.

“It is becoming clear there exists enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the ‘informal economy’,” Mr Ofori-Atta observed on Wednesday, November 17 as he presented the 2022 budget statement in Parliament.

“After considerable deliberations, government has decided to place a levy on all electronic transactions to widen the tax net and rope in the informal sector. This shall be known as the ‘Electronic Transaction Levy or E-Levy’.”

He explained that the new E-levy will be a 1.75 per cent charge on all electronic transactions covering mobile money payments, bank transfers, merchant payments and inward remittances to be borne by the sender except inward remittances, which will be borne by the recipient.

This will, however, not affect transactions that add up to GH¢100 pr less per day.

“A portion of the proceeds from the E-Levy will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure among others.”

This new levy is scheduled to start Saturday, January 1, 2022.

In 2020, total value of transactions was estimated to be over GH¢500 million with mobile money subscribers and users growing by 16 percent in 2019.

Information from 3News was included in this report.

 

 

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