The levy will take effect from January 1, 2022 once the appropriation is passed
Ken Ofori-Atta has delivered the 2022 budget statement
Minister of State at the Finance Ministry, Charles Adu Boahen has justified government’s decision to introduced a 1.75% charge on all electronic transactions, covering Mobile Money and others.
Ken Ofori-Atta delivering the 2022 budget statement before Parliament on Wednesday November 17 said the move forms parts of efforts to widen the country tax net and shore up more revenue.
But the introduction of the Electronic Transaction Levy has been met with some discontent by a cross-section of Ghanaians kicking against it. They believe the decision to especially tax MoMo transactions will only disadvantage the poor.
Charles Adu Boahen in an interaction with Citi Business News justified that the exemption given to mobile money transactions below GH¢100 as one that is in the interest of poor Ghanaians.
“We have exempted the GH¢100 per day from this levy because we want to ensure the vulnerable in society are excluded and also that it does not deter or delay the financial inclusion drive,” the minister said.
“We did some surveys and analysis and realized that about 40 percent of transfers are below GH¢100, so essentially 40 percent of the populace are protected from this levy. And so, we believe that, by far, it takes care of the vulnerable in society,” Adu Boahen explained.
He continued, “We have to come up with a way to democratise tax revenue, and it seems the only effective way to do so was something was tied to mobile money.”
Meanwhile, the Electronic Transaction levy will be waived for transactions that amount to GH¢100 or less in a day or approximately GH¢3,000 per month.
The implementation of the newly introduced e-transaction levy is expected to take effect from January 1, 2021 once the appropriation of the 2022 Budget Statement is passed by Parliament. Read Full Story
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