Following the reading of the 2022 budget, which the finance minister referred to as a “life savior budget,” there has been a lot of discussion on MoMo Tax.
During the budget presentation in parliament on November 17, 2021, Finance Minister Ken Yaw Ofori-Atta revealed that the government will collect a new fee on electronic transactions in 2022 to extend the tax net and bring in the informal sector.
“After great deliberation, the government has decided to levy a fee on all electronic transactions in order to expand the tax net and bring in the informal sector,” he said. This will be referred to as the E-levy (Electronic Transaction Levy). ” This has gotten a lot of Ghanaians and the opposition party talking. People appear to be dissatisfied with the levy.
Mr Kwabena Darko-Mensah, the Western Regional Minister, indicated that the government should be applauded for the E-levy on Mobile Money transactions, as it will create significant money for most of the needed developmental initiatives.
He went on to say that the fee will benefit the wealthy rather than the poor, because transactions between GHS1 and GHS100 will not be charged, and hence will not be a burden to them. Mr Okyere Darko then responded to critiques of the budget and tax from the opposition party and some residents by stating that the levy is less expensive than the lorry fare needed to personally hand over money to another person or to banks for transactions.
The cost is particularly significant since it will allow the majority of Ghanaians to become tax-paying citizens, as just roughly 3 million of the country’s 30 million residents currently pay direct taxes.
He explained, “Because not enough individuals pay direct taxes to create sufficient income.”
It wasn’t long ago that the Vice President declared that there was no need for fees on mobile money transfers.
