The Association of Mobile Money Operators (MMOs) of Ghana have thrown their support behind calls for the electronic transaction levy (e-levy) to be reviewed downwards.
In a statement, the MMOs said the e-levy is having a heavy toll on business and reviewing it downwards would be best for all stakeholders.
“We support the review of the E-levy and soon,” the president of MMOs, Dela Abosti has said.
Mr Abotsi announced the association’s support for the downward review of the E-levy tax policy speaking on the business segment of the 505 news analysis programme on Accra-based Class 91.3 FM on Wednesday, November 16, 2022.
He said: “We have done our internal survey and we will make that known to all soon.
“It is in view of this, we as an association support the review of the policy because it is telling on the business of MMOs.”
Already, Dr Ken Ashigbey, the Chief Executive Officer of the Ghana Telecommunications Chamber, has called on the government to reduce the electronic transactions levy (E-levy) from 1.5% to 0.1%.
He indicated that the introduction of the e-levy at 1.5% has proven worthless to both the government and the development of Ghana’s economy.
Speaking in an interview, Dr Ashigbey explained that while calling for a total scrap of the tax measure would be insensitive considering the government’s dire need for money amidst economic turmoil, reducing it to 0.1% would recondition the digital economy, thus generating more revenue for the government.
MoMo merchants have been making arrangements with customers to circumvent the e-levy, with some admitting to the Ghana News Agency on condition of anonymity.
The merchants said some people deposit money to recipients through them to avoid the payment of the E-levy, while others allowed cash-out from their end instead of transferring the money to the recipients directly and paying the corresponding tax.
CEFIS observed that “in many commercial transactions, the parties involved negotiate based on a ‘gentleman’s agreement’, where the sender deposites cash into the wallet of the receiver through a MoMo merchant account to avoid the payment of its corresponding e-levy charge.”
Prof Anthony Amoah, a co-author of the study, who spoke to GNA, said: “If the Government reduces the rate from the 1.5 per cent to 0.5 per cent and people don’t feel the impact, then you’re going to rake them in,”