Ghana: 1.75% Tax on Online Payments Challenged by Mobile Money Agents

(Ecofin Agency) - Since it was unveiled in the 2022 budget by the Minister of Finance on November 17, e-levy has been opposed by both political and telecom players. Everyone fears a negative impact on the booming electronic payment market.

The whole day of Thursday, December 23 promises to be difficult for Ghanaians who will want to send, receive or make payments by Mobile Money. The various managers of the mobile money service points, united within their association, have decided to go on strike.

They in turn are protesting against the 1.75% tax on electronic transactions that the government wants to impose on the telecoms market. They said they view “this levy as highly regressive and critical to the survival of our businesses.”

Mobile Money agents are not the only ones opposed to the electronic transaction tax the government wants in the 2022 budget. pledged to reject it by all means. On the side of the telecom operators MTN and Airtel, the option chosen so that this tax does not weigh too much on consumers is the reduction of transaction costs by 25%.

The e-levy, unveiled in Parliament on November 17 by the Minister of Finance, Ken Ofori Atta, has since been the subject of strong criticism from various parties, in particular consumers who denounce a charge tax which risks undermining the efforts undertaken by the government for several years to transform the economy of Ghana and lead to a cashless society. Monday, December 20, a heated exchange which led to a tussle in the National Assembly also pitted the deputies of the majority of the New Patriotic Party (NPP) against those of the NDC over the e-levy.

The government of Ghana remains committed to passing this tax in the 2022 budget to support entrepreneurship, youth employment, cybersecurity, digital and road infrastructure development with the money raised, among others. Parliament has until January 18 to decide by vote whether the tax will come into force on January 1, 2022 or not.

Muriel Edjo

Also read:

02/12/2021 - Ghanaian parliament to lower electronic transaction tax

23/11/2021 - Ghana: the government imposes a tax of 1.75% on electronic transactions