We will together with Ghanaians resist Momo tax – NDC MPs
The minority caucus in Parliament has vowed to reject the government’s decision of imposing a 1.75 per cent levy on all electronic transactions.
The levy will be imposed on mobile money payments, bank transfers, merchant payments and inward remittances.
According to the Finance Minister who revealed this plan by the government to bring in more revenue during the 2022 budget presentation, the levy is aimed at enhancing financial inclusion and protecting the vulnerable.
Ranking Member of the Finance Committee Cassiel Ato Forson together with his colleagues on the Minority side has a different opinion.
Airing his views after the Minister’s budget presentation to the legislature, Mr. Forson said the new levy will “only increase hardship and compromise inward remittance.”
He indicated that the minority will “stand by Ghanaians in opposing the momo tax.”
The levy will be waived for transactions that amount to GHS 100 or less in a day, or approximately GHS 3,000 per month.
According to the government, part of the revenue collected from the levy will be used to support entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure among others.
The government expects that this new policy will be implemented and come into full force on January 1, 2022, if the appropriation is passed.
“Government will work with all industry partners to ensure that their systems and payment platforms are configured to implement the policy”, the Finance Minister said.
He indicated that the total value of transactions for 2020 was estimated to be over GHS 500 billion as compared to GH¢78 billion in 2016, while total mobile money subscribers and active mobile money users have grown by an average rate of 18% and 16% respectively between 2016 and 2019.
By: Stella Annan | myactiveonline.com Twitter @activetvgh
