Ken Ashigbey – Taxable Mobile Money Transactions Should Exceed $200 Per Day.

Business

Kenneth Ashigbey, CEO of the Ghana Chamber of Telecommunications, has requested the government to raise the exemption threshold for the electronic transaction fee to $200 per day.

He claims that this will allow many micro and small businesses who use mobile money to continue to use the service.

“According to how they intend to implement it [the e-levy], it will be between your mobile money if you transfer money within the same network to another person if you made a debit card payment at a point of sale if you transfer money from your mobile money to another bank account or from a bank account to another person’s mobile money.”

“Our idea is that this specific levy be doubled to $200 per day, but it should be on a pocketbook,” he added.

The Finance Minister, Ken Ofori-Atta, stated in introducing the tax in the 2022 budget that the $100 cap for the e-levy is intended to safeguard the poor and disadvantaged in society.

Dr. John Kumah, Deputy Finance Minister, further stated that “we found that roughly 30% of those who use Momo in Ghana do not do more than 100 a day, and that includes the poor group of Momo users.”

“This policy exempted every Momo transaction up to and below 100,” he said on ScoopGh on Thursday, November 18.

Mr Ashigbey slammed the levy’s labeling as a ‘MoMo’ tax, calling it discriminatory and unfair because it applies to all electronic transactions and transfers.

He stated that efforts to promote QR code payment in the country may not deliver the expected results owing to the implementation of the electronic tax.

“So all of these talks are things that we need to look at, and we need guarantee that we can earn the income that government needs without undermining the government’s digital ambition [and] without having an impact on financial inclusion.”

“More significantly, it should be fair.” “This should be a mobile money tax, not an electronic transaction tax,” he stressed.

Meanwhile, Policy Risk Analyst Dr. Theo Acheampong has advocated that the 100 limit be raised. I believe it might rise to roughly 175 every day, for a total of around 5,000 per month.”