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The Minority in Parliament has vowed to resist the government’s decision to impose a 1.75 percent levy on all electronic transactions.
The 1.75 percent levy will be imposed on transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances.
The Finance Minister, Ken Ofori-Atta, who disclosed this during the presentation of the 2021 Budget Statement, said the levy is aimed at enhancing financial inclusion and protecting the vulnerable.
However, the Ranking Member on the Finance Committee of Parliament, Cassiel Ato Forson disagrees.
Speaking to the press after the Minister’s budget presentation in Parliament, Mr. Forson said the new levy will “only increase hardship and compromise inward remittance.”
He said the Minority will thus “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.
The government says portions of revenue collected from the levy will be used to support entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure among others.
It is the expectation of the government, that the implementation of the new policy will come into force effective 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 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.