Reduce E-levy to 0.5% – MoMo agents association to gov’t  

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The Mobile Money (MoMo) Agents Association of Ghana wants the E-levy reduced from 1% to 0.5%.

The Minister of Finance, Ken Ofori-Atta, announced a lowering of the E-Levy from 1.5% to 1%.

The regulation would apply to all transactions by 2023, he noted. The agents say the income goal may be attained if the government rethinks the rate.

Evans Otumfour, the Association’s General Secretary, told Citi News that Ghanaians would evade the fee if it isn’t reduced.

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“Government must conduct research to find out why people are not patronizing MoMo. It is obvious that the rate is one of the major hindrances to government achieving its revenue. So, government must reduce the rate so that a lot of people will not be impacted.

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“There are over 17 million MoMo users, so if government pegs the rate at 0.1 or 0.5 percent, it will still meet its revenue target. If not, people will look for alternatives like the use of cash.”

Even, the Minority in Parliament has suggested a 0.5 percent Electronic Transfer Levy and a GHS300 threshold to cushion poorer Ghanaians.

Leader of the caucus, Haruna Iddrisu, said his side was open to collaborating with the government as it works to overcome the economic crisis.

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“We will subject it [the new E-levy rate] to further critical and thorough discussions as a caucus in order to assist the government to get out of its eminent economic crisis,” he said.

“But without going into the scenarios, as you look at your scenarios, consider another 0.5 percent at a threshold of GHS 300 as compared to what you have admitted of 1 percent at a threshold of zero,” the Minority leader added.

Some mobile money users have also expressed their displeasure about the proposed changes.

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