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Slash E-levy further to 0.5% – Momo Agents tell Gov’t

The Mobile Money (MoMo) Agents Association of Ghana has urged the government to further reduce the Electronic Transfer Levy (E-levy) from 1% to a rate between 0.1 to 0.5%.

The controversial levy that currently stand at 1.5% will be reduced to 1% in 2023 but without a threshold.

This means all transactions will be levied without a cap, according to the Minister of Finance, Ken Ofori-Atta.

But the Momo agents who are not happy about the development believe the expected revenue target can be reached if government takes another view of the rate.

The General Secretary of the Association, Evans Otumfour believes Ghanaians will keep evading the levy if there is no further reduction.

“Government must conduct a research to find out why people are not patronizing MoMo. It is obvious that the rate is one of the major hindrances to government achieving its revenue. So government must reduce the rate so that a lot of people will not be impacted. There are over 17 million MoMo users, so if government pegs the rate at 0.1 or 0.5 percent, it will still meet its revenue target. If not, people will look for alternatives like the use of cash,” he said in an interview with Citi News.

Meanwhile, the Minority in Parliament has suggested a 0.5 percent Electronic Transfer Levy and a GHS300 threshold to cushion poorer Ghanaians.

Leader of the caucus, Haruna Iddrisu, has said his side was open to collaborating with the government as it works to overcome the economic crisis.



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