Skip to main content

'MoMo tax' to accrue GH¢6.5bn next year


The government expects to mobilise about GH¢6.5 billion from the newly introduced E-Levy next year, the Minister of State at the Ministry of Finance, Charles Adu Boahen, has told Graphic Online.

The levy imposes a 1.75 per cent tax on mobile money and other electronic (E) transactions that exceed GH¢100 per customer per day.

Boahen said Thursday that the GH¢100 limit exempted about 40 per cent of patrons of electronic transactions, particularly MOMO.

He said data on E-transactions showed that about 40 per cent of patrons either sent or received less than GH¢100 per day.

Majority of these are the economically disadvantaged, hence the reason to exempt them from the tax, the minister said.

Read also: Government yet to meet industry players to discuss E-Levy

The Minister of Finance, Ken Ofori-Atta, announced the introduction of the E-levy Wednesday during the presentation of the budget.

At GH¢6.5 billion, the target could prove crucial for the government's revenue projections next year.

Faced by dwindling revenues, strong debt build up and waning investor confidence, the government said in the 2022 Budget that it aimed to grow domestic revenue by 44 per cent next year, the highest annual growth rate in recent times.

Ofori-Atta said the E-Levy was one of the strategies by the government to mobilise revenue for development as part of a burden sharing strategy.

MOMO transactions have been enjoying tremendous growth in recent times, with their vending points eclipsing bank branches.

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

Mr Speaker, following this observation, there exists significant potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the “shadow economy,’” Ofori-Atta told Parliament.

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

Source: Graphic

Comments

Popular posts from this blog

Fitch Solutions retains 2025 growth rate projection at 4.2%

 Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...

BoG injects $20m into FX market to support 11 BDCs

  The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...