The government’s intention to impose a 1.75 percent charge on all electronic transactions has been met with opposition from the Minority in Parliament.
Mobile money payments, bank transfers, merchant payments, and inward remittances will all be subject to the 1.75 percent fee.
The charge is intended at boosting financial inclusion and protecting the vulnerable, according to Finance Minister Ken Ofori-Atta, who announced it at the presentation of the 2021 Budget Statement.
Cassiel Ato Forson, the Ranking Member of Parliament’s Finance Committee, disagrees.
Mr. Forson said the additional charge will “only raise suffering and undermine inward remittance” in a press conference following the Minister’s budget presentation in Parliament.
As a result, he stated, the Minority will “stand alongside Ghanaians in their opposition to the momo tax.”
For transactions of GHS 100 or less per day, or around GHS 3,000 per month, the levy will be eliminated.
Parts of the levy’s money will be utilized to assist entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure, among other things, according to the government.
If the appropriation is passed, the government anticipates that the new policy will go into effect on January 1, 2022.
The Finance Minister stated, “The government will engage with all industry partners to ensure that their systems and payment platforms are adjusted to follow the legislation.”
He stated that the overall amount of transactions in 2020 is expected to exceed GHS 500 billion, up from GHS 78 billion in 2016, and that total mobile money subscribers and active mobile money users have grown at an average rate of 18 percent and 16 percent between 2016 and 2019.