Mobile Money Operators across the country are worried about the negative effects the Electronic Transfer Levy (E-levy) has on their businesses. The E-levy’s implementation of the E-levy began on May 1, 2022 after a tumultuous time in Parliament.
When Evans Abotsi, the National Chairman of the Mobile Money Operators spoke to Mark Smith on A1 Radio’s Day Break Upper East Show, he explained that many operators have had to lay off staff in an attempt to save their businesses.
“Members are having to lay off workers. Some shops or businesses have had to close some revenue streams and everything. Since the implementation of the levy, things have never been the same. Transactions we used to perform usually have reduced. Nobody needs to do any studies to realise that the e-levy has really affected businesses since its implementation.”
“For customers, the burden of the levy is so much on them, especially having to look at the nature of the whole policy. It hasn’t been designed so that users of the platform wouldn’t be tempted to use alternatives,” he said.
For Mr. Abotsi, ahead of the 2023 Budget Statement and Financial Policy, it would be in the interest of the government to consider reviewing the tax on electronic transfers.
“The levy, as it is now, it would be prudent and in the interest of the government to look at modifying the levy, reviewing it downwards, scrapping some of the restrictions and further extending some of the exemptions that we are already having,” he said.
He agreed with Ken Ashigbeys’ suggestion of reviewing the E-levy to 0.1 percent saying, “if customers find it 0.1 percent convenient, then it means that we are going to drive a lot of traffic to our businesses. That would mean that businesses would go u. Revenues would go up.”
