Communication Ministry to meet telcos today over mobile money tax
Due to the new proposed tax mobile money transactions, the Communications and Digitization Ministry is scheduled to meet the telecommunication companies today November 19 2021 owing to the role of the telecoms as key stakeholders in the implementation and operationalization of the new tax if approved by Parliament.
The meeting is part of the preparation by the government to introduce the 1.75% tax on all electronic transactions above GHS100 that has sparked some agitations from the public.
Per the rules now users and recipients pay 1% each on every transaction.
Speaking during an interview, the sector Minister Ursula Owusu-Ekuful reiterated that the meeting is important as the government seeks to “widen the tax net to finance the development agenda of the government.”
“The service providers are collecting 2%, one from the sender and another from the receiver. I think this needs to be relooked. There is more that can be done to widen our tax net.”
According to the Finance Minister, Ken Ofori-Atta, while delivering the 2022 budget statement, the move is to enhance financial inclusion and protect the vulnerable.
Per the proposed levy, transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances will have the levy imposed on them and will be borne by the sender.
Government also claims the levy will be waived for transactions that amount to GH¢100 or less in a day or approximately GH¢3,000 per month.
The government also explains that part of the revenue collected from the levy will be used to support entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure among others.
Implementation of the new policy is scheduled to come into full force effective January 1, 2022, if the appropriation is passed.
However, the Minority caucus in parliament is not enthused with this decision and have vowed to resist the government’s decision.
By: Stella Annan | myactiveonline.com Twitter @activetvgh
