You are here: HomeBusiness2021 11 20Article 1405693

Business News of Saturday, 20 November 2021


E-levy will cripple businesses, we have to resist it - MoMo Agents Association

A Mobile Money agent serving a client A Mobile Money agent serving a client

The Mobile Money Agents Association of Ghana has threatened to resist the implementation of the 1.75 percent levy on mobile money and other electronic transactions.

The Association is of the view that the levy that seeks to tax transactions that exceed GH¢100 per day is nothing but a ‘killer of businesses’.

Public Relations Officer for the Association Charles Kwesi Addo noted that the introduction of the levy shows that the government is insensitive to the plight of Ghanaians.

He said the government is always encouraging the youth to establish their own businesses but it is not providing a conducive atmosphere for businesses to survive.

Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5Fm, he said the battle ahead is not only for mobile money agents but persons who use the mobile money system for transactions.

He asked them to join the Association in resisting the new levy because it would create serious economic hardship for citizens.

To him, the levy is unreasonable and the worst situation was that they were not consulted before the levy was introduced.

Finance Minister Ken Ofori-Atta in presenting the 2022 budget disclosed that the proposal is part of efforts by the government to raise revenues to prosecute its development agenda.

He said when effective, the levy will not affect people whose monthly transactions totaled GH¢3,000.

He said the levy will be called Electronic Transaction Levy or E-Levy and a portion of the proceeds from it will be used to support entrepreneurship, youth employment, cyber security, digital and road infrastructure, among others.

But the PRO for the Association posited that they feel disappointed and disrespected because they were not consulted.

He warned mobile money users would stop using the services if the levy is implemented.

The effect would be that several persons would be out of business and the rate of unemployment would go up.