E-levy: 25% reduction by Telcos is not the solution – Nana Yaa Jantuah

The General Secretary of the Convention People’s Party (CPP), Nana Yaa Jantuah has reacted to report that telecommunication(Telcos) companies in the country have agreed to reduce their person to person transaction charges by 25%.

According to her, the reduction is not the solution to the e-levy seeking to tax some 1.75% on mobile money transactions above ₵100.

Nana Yaa Jantuah said already Ghanaians including public sector workers are burdened with taxes adding at least one -third of workers’ salaries are used to service taxes even before they receive it.

The CPP politician was speaking on Alhaji and Alhaji aired on Pan African TV on Saturday, December 18, monitored by GhanaPlus.com.

 “…..the solution to the E-levy is not the fact that the Telcos reduce the fees that they charge us by 25%. Whatever it is, there is some form of charge. 1.75% on the monies that I am sending to my parent in the village to go the hospital, 1.75% on every transaction I do using mobile money,” Nana Yaa Jantuah said.

“The sad thing is that Sena, the money I am sending to whoever needs it is charged already. I have paid my taxes already……As a public service worker one –third of your salary goes to taxation,” she lamented.

L-levy: Telcos reduce MoMo charges by 25%

The Ghana Chamber of Telecommunication on December 15 announced it members have agreed to reduce by 25% mobile money fees on person to person transactions to cushion Ghanaians ahead government intended 1.75%  levy on mobile money transaction.

The news communication through a press statement said “We acknowledge the need to expand the tax base. However, to reduce the overall impact of the new levy on consumers, MTN and AirtelTigo have agreed to a downward revision of their P2P (person to person transfer) fees by up to 25% depending on the respective operator. Vodafone currently has no charges.”

The statement further stated consumers will be notified on the revised rates when the bill currently before parliament is passed.

“Our customers service centers would be ready to provide to customers assistance during the implementation of the e-levy. We pledge our continued support to our customers and would continue to deliver innovative products and service that would ensure the convenience of the digital financial platforms and support the national digital transformation effort”.

Gov’t of Ghana introduce Momo Tax

 The government of Ghana in its 2022 Budget Statement  announced a 1.75% electronic transaction levy applicable on all MoMo transaction exceeding ₵100.

The levy, according to the Finance Minister who presented the budget to Parliament on Wednesday, November 17 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.

The levy has however been rejected by Ghanaians as well as the Minority Group in Parliament.

Source: GhanaPlus.com