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Home News

Communications Ministry to meet telcos today on proposed e-levy

Samuel Adams by Samuel Adams
November 19, 2021
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Communications Ministry to meet telcos today on proposed e-levy
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The Ministry of Communications and Digitalisation will meet with telecommunication companies today, on current service charges on mobile money transactions.

This is ahead of plans by government to introduce a 1.75% tax on all electronic transactions above  GH¢100 daily, a move that has been opposed by a section of the public.

Currently, users and recipients are charged about 1% each on every transaction.

Speaking on GHOne TV, the sector minister, Ursula Owusu-Ekuful said the meeting is essential as government seeks to “widen the tax net to finance the development agenda of the government.”

“The service providers are collecting 2%, one from the sender and another from the receiver. I think this needs to be relooked. There is more than can be done to widen our tax net.”

This fee, according to the Finance Minister, Ken Ofori-Atta, is to enhance financial inclusion and protect the vulnerable.

Transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances will have the levy imposed on them and will be borne by the sender.

However, the levy will be waived for transactions that amount to GH¢100 or less in a day or approximately GH¢3,000 per month.

The government says portions of revenue collected from the levy will be used to support entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure among others.

It is the expectation of the government, that the implementation of the new policy will come into force effective January 1, 2022, if the appropriation is passed.

Meanwhile, the Minority in Parliament has vowed to resist the government’s decision.


Source: Citi News

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