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Business News of Thursday, 18 November 2021

Source: otecfmghana.com

2022 Budget: Panic withdrawals hit Mobile Money over e-levy

A mobile money merchant's shop | File photo play videoA mobile money merchant's shop | File photo

Panic withdrawals have hit hundreds of Mobile Money Vendors as users are reportedly withdrawing their deposits from their Electronic Wallet (E-Wallet) following the government's decision to introduce Electronic Transaction Levy (e-levy).

The National Public Relations Officer for Mobile Money Agents Association Mr. Charles Adu who disclosed this to OTEC News' Kwame Agyenim Boateng in an exclusive interview said their members across the country recorded an astronomical withdrawal of money with most customers attributing their decision to the introduction of the new tax on MOMO transactions.

The government, as part of strategies to widen the country’s tax net, announced an Electronic Transaction Levy

The E-levy which was announced by the Minister of Finance Ken Ofori Atta during the presentation of the 2022 budget statement on Wednesday, November 17, 20221, will cover Mobile money transactions, remittances, and other electronic transactions.

It will be a 1.75 percent charge on all electronic transactions.

This fee, according to the Finance Minister, Ken Ofori-Atta, is to enhance financial inclusion and protect the vulnerable.

“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'," Ken Ofori-Atta said on Wednesday, during the presentation of the 2022 Budget in parliament.

The government says portions of revenue collected from the levy will be used to support entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure among others.

Mr. Charles Adu in his initial reaction said they will not welcome this new levy.

He noted that the imposition of tax on electronic transactions will impede moves to transform Ghana’s economy into a more robust cashless system.

“We are already overwhelmed with existing taxes and other unbearable production costs, adding additional taxes will not only overburden the suffering masses, but it will also collapse our business."

He disclosed that the association has called for an emergency meeting and would soon come out with a communique to express their disgust over the new levy.