Momo Agents Association call on government to scrap E-Levy

The Ghana Mobile Money Agents Association has call on government to scrap the proposed 1.75% E-Levy from the 2022 year budget.

A representative of the Association explained that, government’s decision of enforcing the E-Levy in the budget will collapse their businesses.

“As a consumer who is used to sending money free, but is now faced with payments will eventually look for an alternative elsewhere because he or she is a rational human being. You shouldn’t forget that the momo work is not all in all but it is a competitive business”.

He added that “the Association believes users of the momo platform will withdraw from using momo when the E-Levy is introduced, hence the collapse of their businesses which is their only source of livelihood”.

“We are not against government or fighting the government, the government should simply scrap the 1.75% E-Levy and rather invest in the Ecosystem.

Customers have started giving hints that they will stop using momo if the E-Levy is implemented. We render services to the customers and if they will not use the momo platform then it means we are out of business” an Agent said.

Government has proposed a 1.75% E-Levy on all Electronic Transactions in the 2022 year Budget statement.

This E-Levy covers mobile money payments, bank transfers, merchant payments and inward remittances.

The E-Levy is projected to give Government an amount of GHc6.9 Billion.

The Finance Minister Ken Ofori-Atta states that the E-Levy is meant to widen the tax net to rope in the informal sector and give government the needed revenue for job creation and development.

However, the E-Levy and other items on the Budget statement led to it’s rejection by Parliament on 29th November 2021.

By Agaatorne Douglas Asaah|

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