Sunday, October 1, 2023

Government imposes tax on MOMO transactions above GH¢100

Most Read

AASU elects new executives at 13th elective congress

At its 13th Elective Congress held at Kibi, Ghana, between December 20-22, 2021, the All-Africa Students Union (AASU) elected...

Brilliant Dr. Shekira receives citation after sweeping 7 medical student awards

The Zongo and Inner City Development Secretariat has presented a citation to Dr. Shekira Yahaya for sweeping 7 medical...


By Selikem Donkor The title of this article rings a bell in the mind of the legally savvy. Yes, it...

Government has proposed to impose a 1.75 per cent levy on mobile money and other electronic transactions that exceed GH¢100 per a day.

The levy is contained in the 2022 budget statement presented by the Finance Minister, Ken Ofori-Atta on November 17, 2021 on the floor of Parliament.

The levy the minister said will be called ‘Electronic Transaction Levy or E-Levy’.

He said a portion of the proceeds from the levy will be dedicated to supporting entrepreneurship, youth employment, cyber security, digital and road infrastructure among others.

The new levy according to the minister forms part of efforts by government to raise revenues to prosecute its agenda.

It would be recalled that the Ghana Chamber of Telecommunications report has revealed that Mobile Money operations contributed ¢250 million as tax in 2020 for the government.

This, the Head of Research and Communications at the Chamber, Derick Laryea says makes the telecom industry one of the biggest contributors to government revenue.

He also noted that the ¢250 million is different from other taxes the government collects from telecommunication firms.

Mr. Laryea however, urged the government not to overburden the sector with direct taxes on Mobile Money because MoMo transactions and operations are already paying huge sums to the government.

He said any direct tax on mobile money transaction will make it counterproductive.

“Based on the results of this study, the eight participating companies in 2020 made a total tax contribution of over ¢3.6 billion in the 2020 calendar year. This represents total taxes borne, collected and other payments and remittances made to central government and other allied agencies” he said at a Knowledge Forum.

The report also indicates that, Top Tax Lines Corporate Income Tax (CIT) constituted the largest tax type paid. This tax relates to taxes borne by the members of the chamber.

Corporate income tax rate is 25% and the industry contributed in monetary terms ¢976 million, which represents approximately 26.8% of the TTC. Value Added Tax (VAT) was the second of the top tax lines of the industry, representing approximately 15.1% of the TTC, which in money terms was over ¢550 million.

- - -
- Advertisement -

Latest News

VPN Available for Torrenting – Private and also Safe Downloads

Compared to NordVPN, which you can find out more about in our NordVPN review, ExpressVPN's attain is wider....
- Advertisement -

More Articles Like This

- - -