E-Levy: Over 40% of MoMo transactions are below ¢100 – Deputy Finance Minister reveals

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Abena Osei-Asare,the Deputy Minister for Finance has revealed that more that 40% of mobile money transactions in Ghana are below ¢100 per day, reports Ghanafeed.

She claimed data from government show that more than 40% of mobile money transactions were below a GH¢100 per day – a challenge that compelled government to waive taxes for this group.

“The majority of mobile money subscribers are low-income earners; so clearly, you see that government did some research and realised that we should exempt the GH¢100 and below,” she stressed.

The Deputy-Finance Minister made these known at the official opening of a four-day sensitisation programme for staff of the Information Service Department (ISD) across Ghana about the electronic transaction levy (E-levy)

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The programme, which is under the auspices of the Ministry of Finance, aims at empowering the ISD to embark a public education campaign to sensitise Ghanaians on the importance of the E-levy. “Government feels that if you earn more, you should be in a position to put in more to help develop our nation,” Abena Osei Asare added.

The Deputy-Finance Minister, who doubles as MP for Atewa East in the Eastern Region, told the ISD staff that customers of commercial establishments who make payments to purchase goods and services do not have to change their method of making payments, as there is no E-levy charge on this as well if the establishments are registered with GRA for VAT or Income Tax.

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Educating ISD staff in the rationale behind the E-levy, she pointed out that per records of the Ghana Revenue Authority (GRA), about 20% of the Ghanaian population are eligible to pay taxes but the number is less – emphasising that many Ghanaians do not pay income tax and so government is hoping that, with introduction of the E-levy, it will help the country widen the tax net to include a larger portion of the population who are eligible to pay taxes.

She further mentioned another reason for introducing the E-Levy was to support revenue mobilisation to tackle challenges of high unemployment, and address inadequate physical and digital infrastructure such as roads, hospital and schools.

Portion of text culled from Ghanafeed

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