Ghana’s New MoMo Tax Is Predicted To Generate Billions Of Cedis

The government of Ghana hopes to make about GH¢6.5 billion from the recently introduced E-Levy one year from now. The levy imposes a 1.75 percent charge on mobile money and other electronic (E) transactions that surpass GH¢100 per customer in a day.

According to the government, GH¢100 limit exempted around 40% of benefactors of electronic transactions, especially Mobile Money (MOMO).

Data on E-transactions showed that around 40% of patrons either sent or received under GH¢100 each day.

Larger part of these are the monetarily disadvantaged, subsequently the motivation to exclude them from the tax.

Ghana’s Minister of Finance, Mr Ken Ofori-Atta, declared the introduction of the E-levy on Wednesday November 17 during the presentation of government’s yearly financial budget.

At GH¢6.5 billion, the objective could demonstrate vital for the government’s income projections one year from now.

With waning of incomes, solid debt build up and melting away investor confidence, the government said in the 2022 Budget that it planned to grow domestic income by 44% one year from now, the highest yearly growth rate lately.

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The Finance minister Mr Ofori-Atta said the E-Levy was one of the techniques by the government to mobilise income for development as a component of a weight sharing strategy.

MOMO transactions have been getting a charge out of gigantic growth as of late in Ghana, with their distributing points overshadowing bank offices.

Mr Ofori-Atta said MOMO transaction hit GH¢500 billion last year, up from GH¢257 billion in 2019 and GH¢78 billion in 2016.

Because of this, the government of Ghana has chosen to increase tax revenues by bringing into the tax section, and transactions that could be best characterized as being embarked on in Ghana’s economy.

The E-Levy is expected to be approved in addition to the 2022 budget and Appropriation Bill.

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