MoMo tax : Don’t use MoMo if you don’t want to pay – Ahenkorah

The Member of Parliament for Tema West Constituency, Carlos Ahenkorah has advice Ghanaians who do not wish to pay the 1.75% mobile money tax imposed on transaction above ₵100 not to use the service.

Speaking to TV3 on the sideline of Parliament on Wednesday, December 8, he said the Momo tax was not compulsory hence one could opt out by simply keeping their monies on the phones.

Mr Ahenkorah described the politicization that has characterized the announcement of the E-levy as unfortunate adding the levy is only targeted at those who want to use the service.

“So, what is happening is quite understandable. But to the extent that it has been used to gain some political points or  it is being done for political expediency, for me, is very unfortunate.

“I will tell you something, I have always been saying that the MoMo tax is not a compulsory tax, you only pay when you use it. If you don’t use it you don’t pay so for me, there is no way any other procedure for making payments is going to equal MoMo,” Mr Ahenkorah said.

“Right now, what we are saying is the tax is targeted at those who have the ability to pay, not those who are receiving. If you are receiving it is okay to go and negotiate with the person who has gone to the bank to borrow money and be a MoMo agent, pay money out, otherwise keep the money  on your phone and you don’t pay any money,” he added.

Using MoMo is cheaper – Ahenkorah

Mr Ahenkorah is of the view using MoMo was a cheaper option than using physical cash and urged persons who are against the levy to result to cash and see.

“It is money targeted at those who want to use the service, even if I stand here and tell people that  if you like don’t pay or if you  like don’t use MoMo, I tell you, using MoMo will be far cheaper. If you think using the MoMo service is difficult or expensive, you try taking your money out there and even see,” Mr Ahenkorah emphasied.

Gov’t of Ghana introduce Momo Tax

The government of Ghana in its 2022 Budget Statement presented by the Finance Minister, Mr Ken Ofori-Atta on Wednesday, November 17 announced an electronic transaction levy of 1.75% applicable on all MoMo transaction exceeding ₵100.

The levy, according to the Finance Minister is 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.

However, since the announcement many Ghanaians, the opposition National Democratic Congress and the Minority in Parliament, most especially, have rejected the levy.  

They maintained the levy will bring more hardships on Ghanaians.

Source: GhanaPlus.com