1.75% E-levy will collapse MoMo business in Ghana – Sam George

Sam Dzata George, the Member of Parliament for Ningo-Prampram, has kicked against the government's introduction of the 1.75% tax on mobile money.

Ningo Prampram MP, Sam George

He said the introduction of E-levy will collapse the Mobile Money business in the country.

According to him, the 1.75% levy will discourage Ghanaians to continue using their mobile money wallet which will in turn kick the MoMo vendors out of business.

He said "Even four years ago you will go to a big shop but they refuse to accept mobile money, you will go to Makola market and they refuse to take mobile money. It has taken us 14 years for people to accept mobile money payments. Mobile money has been in operation since 2009 and has taken us 12 years for people to finally accept mobile money in the country. Just people now accepting mobile money you are bringing e-levy."

The Finance Minister, Ken Ofori-Atta presenting the budget in Parliament on Wednesday, November 17, 2021, outlined key policies the government has already done and will do in the future.

The budget dubbed is 'Agyenkwa' budget which means 'Saviour' budget.

Ken Ofori-Atta has announced that the government of Ghana has proposed the abolishment of all road tolls in the country.

He also announced the introduction of a 1.75% phone transactions levy payable by mobile money users per transaction above GH¢100.

Sam George speaking on the 1.75% levy cited some African countries which collapsed their mobile money services after the introduction of e-levy.

"In Uganda, it affected mobile money revenue by 80%, In Kenya, they saw 43% deep in transaction value, the government had to reverse the policy after two years, go to Spain they introduced the digital tax but in 2019 it cost them 592 billion Euros," he said.

He added: "People sit down and say if I make any transaction above Ghc 100 I will have to pay 1.75%, therefore, I will not engage in such. Even the 1% charged by service providers must be scrapped."

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