Financial analyst slams Ursula Owusu over tax on MoMo transactions

Ghanaians will soon be paying taxes on revenue secured from mobile money transactions, Minister of Communications, Ursula Owusu has said.

Sydney Casely-Hayford

According to her, there is the need to charge taxes on the over GH₵70 million the operators gain from transactions to generate more revenue for the country.

"Mobile Money taxation is on our radar and we are monitoring and very soon you’ll hear of us in no time but as it stands it’s not been taxed," she stated.

It is still not clear what might have influenced this move to start taxing fees charged by the telcos on mobile money transactions, but reports indicate that the tax could be in the form of a VAT on mobile money fees as well as the revenue earned on this service. 


The action by the government to tax mobile money transactions has not gone down well with Ghanaians as Financial analyst, Sydney Casely-Hayford disagreed with Ursula Owusu's decision to impose a tax on mobile money.

Casely-Hayford speaking on Citi TV said the Minister is misguided.

He said "She is totally misguided. She is completely off the tangent on this one. The fact of the matter is when you have technology progress and the government is talking about trying to digitize as much as it can for its revenue income, why do you want to go and kill the one that is laying the golden goose? If all we want to do is to up the opportunities for fintechs to be able to do more so we can reduce the cost of transferring money and intermediation, you can’t do this. It’s totally out [of place].


"And it’s at variance with the budget that has just been read as well. The budget is very clear that it will be emphasizing and focusing more on the digital economy next year so why do you want to go and tax it? It’s as if the Communications Minister has a feud going with the mobile money operators."


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