When asked about the controversial Electronic Transfer Levy (E-levy), Vice President Mahamudu Bawumia remained mute.
The Vice President only mentioned tax policy when referring to taxes and levies eliminated or lowered by the Akufo-Addo administration in the previous five years.
Dr. Bawumia said that the Akufo-Addo administration has lowered or eliminated 18 taxes and levies, including the E-levy, which was decreased from 1.75 percent to 1.5%.
“A 1.5 percent E-Levy on electronic financial transactions,” he remarked. The Vice-President has said that taxing MoMo transactions would poor Ghanaians.
Many people were surprised when his administration imposed the levy despite widespread public opposition.
Ghanaians anticipated him to remark on the E-levy after its contentious passing in Parliament and scheduled implementation in May 2022, but he neglected to do so.
The amount and number of mobile money transactions in Ghana have decreased, although Dr. Bawumia maintains that Ghana has the fastest growing mobile money market in Africa.
The Bank of Ghana’s statistics reveals a drop in MoMo transactions and interoperability in recent months.
He asserted Ghana is the first nation in Africa to achieve fast-growing MoMo interoperability.
“I should note that Ghana is the first country in Africa and one of the few in the world to achieve this type of interoperability between bank accounts and mobile wallets. Achieving mobile money interoperability (MMI) in Ghana is therefore no small feat, especially at the cost ($4.5 million) we did it. The data shows that because of MMI, Ghana is the fastest growing mobile money market in Africa.”
An E-levy is a tax on electronic transactions, including mobile money. The tax would be applied to daily electronic transactions exceeding GH100.