1.75% MoMo levy is cheaper than in/out lorry fare to personally deliver money

During the 2022 budget presentation at the parliament on November 17, 2021, the Finance Minister, Ken Yaw Ofori-Atta announced that a new levy is to be charged by Government in 2022 on electronic transactions to widen the tax net and rope in the informal sector.

He said, “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’.”

He went further to explain that the E-levy will be a 1.75 per cent charge on all electronic transactions covering mobile money payments and inward remittances which will be borne by recipients, however, it will not affect transactions that add up to GHc 100 or less per day.

However, speaking to the Western Regional Minister, Mr Kwabena Darko-Mensah on the Jolly Breakfast Show (JBS) on Thursday, November 18, he made it known the government should be applauded for the E-levy on Mobile Money transactions as it will generate heavy revenue for most of the developmental projects needed to be done.

He also indicated the levy will not affect the poor but only the affluent in the society since transactions from GHS1-GHS100 will not be taxed and that will not be a burden for them.

Mr Okyere Darko then countered the opposition party and some citizens who were criticising the budget and levy by noting that, the levy is relatively cheaper than the lorry fare one will use to personally hand over money to another person or to banks for transactions.

Also, the levy is important as it will enable the majority of Ghanaians to become tax-paying citizens since not more than 3 million out of the 30 million citizens pay direct taxes.

“Since not enough citizens pay direct taxes to yield enough revenue for developments, it is necessary to spread the tax game to the majority of the citizens and the E-levy is a good idea,” he said.