Business News of Monday, 6 November 2023
Source: www.ghanaweb.com
1 million MoMo accounts were inactive after E-Levy implementation – ISSER
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Research conducted by the Institute of Statistical, Social and Economic Research (ISSER) has shown that one million mobile money accounts were inactive after government introduced the Electronic Transfer Levy (E-Levy).
According to ISSER, the total number took a downturn from 19.1 million to 18.1 million in July 2022.
It also revealed that the total number of transactions fell by 10 million while the total value fell by GH¢2.8 billion between March and April 2022.
ISSER noted that the number of registered and active accounts and agents remained on an upward trend in January 2023 while the number of active accounts dropped by 100,000 by February 2023.
It mentioned that, "Ghanaians immediately resorted to alternate payment systems when the E-levy was implemented. Furthermore, less than 7% of the target revenue was realised initially. Only ¢93 million out of GH¢1.4 billion was raised."
"Interestingly, sensitivity to the tax, the announcement of the E-levy led to a growth in alternate payment systems (GHIPPS instant pay, cheques cleared, internet banking, etc)," myjoyonline.come said the report stated.
The introduction of E-Levy, according to government forms part of measures to help improve its domestic revenue mobilization.
Following several criticisms, the E-Levy tax was reviewed downwards from 1.5% to 1%.
Data from the Ghana Revenue Authority (GRA) revealed that the Electronic Levy (E-Levy) generated GH¢246.9million in revenue.
It accounted for 11 percent of the projected GH¢2.24billion for the year.
Since its implementation in May 2022, the E-Levy had generated a total of GH¢861.47million revenue by March 2023.
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