The government of Ghana has initiated steps to block all Mobile Money Merchants from transferring cash on behalf of the public who don’t want to transfer the money by themselves in a bid to avoid e-levy.
The next Mid-year budget review and the main Budget in November will make it impossible for Merchants to send cash transfers without the e-levy charges.
According Sources, this has become necessary due to the wave of massive avoidance of the e-levy through merchants transfer.
Under the new arrangement, patrons who want to send money through merchants will have to pay merchant charges as well as the e-levy charges on the amount to be transferred.
The government hopes to raise enough money from the tax to support its International Monetary Fund move.
This is after a top member of the NPP, Gabby Otchere Darko said that the e-levy is only delivering 10 per cent of estimated income.
The former Executive Director of the Danquah Institute lamented the low revenues in Ghana as compared to the rest of the world and also debt levels which he said are dangerously high.
In a series of tweets on Monday, June 27, he said “What options are open to government? The question should rather be: what option if adopted, will re-inject investor confidence in our economy? Even if we find the $3-5 billion required, will that help? E-levy which was to have given us some 600m by now has done less than 60m.
The Finance Minister, Ken Ofori Atta announced a new 1.75% e-levy on all electronic transactions in the 2022 budget, sparking a public outcry on social media since last year. It was later reduced to 1.5%.
The tax continues to face resistance.
