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The Minority in Parliament has threatened to kick against the government’s decision to impose a 1.75 percent levy on all electronic transactions.
The Finance Minister, Ken Ofori Atta revealed during the presentation of the 2022 Budget Statement that 1.75 percent levy will be imposed on transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances.
He indicated that the levy is targeted at enhancing financial inclusion and protecting the vulnerable.[ads2]
But speaking to pressmen after the budget presentation, ranking member of the Finance Committee of Parliament, Cassiel Ato Forson argued that the new levy will “only increase hardship and compromise inward remittance.”
His vehemently stated that he Minority will thus “stand by Ghanaians in opposing the momo tax.”[ads3]
Presenting the budget on Wednesday, the Finance Minister said the new levy will be waived for transactions that amount to GHS 100 or less in a day, or approximately GHS 3,000 per month.
He said portions of revenue collected from the levy will be used to support entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure among others.
Mr. Ofori Atta stater that the implementation of the new policy is expected will come into force effective January 1, 2022, if the appropriation is passed.[ads4]
“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 said 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.[ads5]
