Momo Tax: “There is more hardship for people with bad roads than paying 1.75%” – Oppong Nkrumah

The Minister of Information, Mr Kojo Oppong Nkrumah has responded to criticism made by a section of the Ghanaian public following the introduction of the electronic levy for momo transactions above ₵100.

Gov’t of Ghana introduce Momo Tax

The government of Ghana in its 2021 Budget Statement presented by the Finance Minister, Mr Ken Ofori-Atta on Wednesday, November 17 announced a 1.75% levy on all momo transaction exceeding ₵100.

The tax, he said was to help widen the tax net and rope in the informal sector into the country tax system.

“After considerable deliberations, the 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”, Mr Ofori-Atta told Parliament.

Ghanaians express displeasure about Momo Tax

Following the announcement, many Ghanaian have expressed their displeasure about the tax.

According to them, the tax will only worsen the already financial difficulties being endured in the country.

Oppong-Nkrumah’s responds

However, speaking on TV3 News360 on Wednesday, November 17 monitored by GhanaPlus.com, Mr Oppong-Nkrumah said, there is more hardship to the many Ghanaians who were without good roads than paying the 1.75%.

He said currently, the country generate woefully inadequate resources to cater for all of it challenges in the road sector.

That the momo tax seeks to address.

He opined, the levy could be considered as a more equitable and effective replacement for the road tolls.

“I have seen TV3 many times cover demonstration by people who say that they want their roads fix. Part of the road fixing challenge is the fact that much money we contribute to in fixing our road is totally inadequate. ₵78million only that comes from our road tolls,” Mr Oppong-Nkrumah said.

“There is more hardship to the people who have bad road than they would be if they pay 1.75% to help us fix their road. The pregnant woman who may die on the road that is not fixed, that is more hardship as compared to 1.75 being charged on persons who send above 100,” he said.

Mr Oppong-Nkrumah said the momo levy will not affect the poor in any way since the poor don’t falls within the above ₵100 target set for the levy.

Source: GhanaPlus.com