Telecom organizations and their mobile money operators have agreed to cut down the charges on transactions by 25% in the midst of the conceivable introduction of the e-Levy.
As per the Ghana Chamber of Telecommunications (GTC), the decision was taken after broad consultations with the government of Ghana on the need to reduce the effect of the new tax on consumers.
In a public statement, GTC said they recognize the need to grow the tax base. Be that as it may, to lessen the general effect of the new tax on shoppers, MTN and AirtelTigo have agreed to a descending modification of their P2P (person to person transactions) fees by up to 25% contingent upon the operator. However, Vodafone right now has no charges.
According to the Ghana Chamber of Telecommunications, every mobile cash operator would notify their customers of the applicable revised rate when the e-levy bill is passed into law.
Not long ago, the government of Ghana had a meeting with the broadcast communications networks to reduce their charges on electronic transactions. The decrease in the mobile money charges would help the government to keep up with the 1.75% demand and reduce the effect of the tax on the ordinary Ghanaian. This move is to guarantee Ghanaians are not ‘loaded’ with the tax.
As per some experts, assuming the telcos reduce their 2% and regardless of whether the government stays at 1.75%, that implies the state is guaranteed of the incomes of the 1.75% and the net impact on the Ghanaian will in any case be low.
The telcos are prepared to give customers the needed support during the execution of the e-demand. They have promised to keep on assisting their customers and would keep on conveying inventive products and services that would guarantee the accommodation of the digital financial platforms and support the national digital transformation effort.
In the interim, since the finance minister Mr. Ofori-Atta announced the government’s decision to introduce a 1.75% tax on all electronic transactions from January 1, 2022, partners have been divided on the move.
Although the government has argued that it is an innovative way to generate revenue, scores of citizens have expressed varied sentiments on its appropriateness.
Even though others have argued in support of the levy, a section of the populace believe that the 1.75% e-levy is an insensitive tax policy that will deepen the already prevailing hardship in the country.
The proposed levy, which will become effective in 2022, is a charge of 1.75% on the worth of electronic transactions. It covers mobile money payments, bank transfers, merchant payments, and inward remittances.
Clarifying government’s decision, the Finance Minister said, the total digital transactions for 2020 were estimated to be over GH¢500 billion (about $81 billion) compared to GH¢78 billion ($12.5 billion) in 2016. Thus, the need to widen the tax net to include the informal sector.