Telecommunications companies and their mobile money operators have agreed to reduce transaction fees by 25% as part of the possible introduction of e-Levy.
According to the Ghana Telecommunications Chamber (GTC), the decision was made following extensive deliberations with the government on the need to reduce the impact of the new tax on consumers.
In a press release, GTC noted that âwe recognize the need to broaden the tax base. However, to reduce the overall impact of the new tax on consumers, MTN and AirtelTigo have agreed to lower their P2P (person-to-person transfer) fees by up to 25% depending on the respective operator. Vodafone currently has no fees.
The JWG added that each mobile money operator would notify their customers of the revised rate applicable when the electronic debit bill is enacted.
Recall that the Minister of Information, Kojo Oppong Nkrumah, revealed Thursday that the government had urged telecommunications companies to reduce their fees on electronic transactions.
He explained that this reduction in mobile money charges would help the government maintain the 1.75% levy and reduce the impact of the tax on ordinary Ghanaian.
So, to ensure that Ghanaians are not burdened with the tax, the government has explored ways to reduce the cumulative effect, he noted.
Speaking to Kwesi Parker Wilson of JoyNews, Mr. Nkrumah said that âthe government has engaged with the telecommunications operators. So if the telecom operators reduce their 2% and even if the government stays at 1.75%, it means that the state is assured of the revenue of 1.75% and the net effect on the Ghanaian will still be small.
The Ghana Telecommunications Chamber (GTC), in the press release, noted that companies are ready to provide assistance to customers during the implementation of electronic tax.
âWe promise our continued support to our customers and will continue to deliver innovative products and services that would ensure the convenience of digital financial platforms and support the national digital transformation effort. “
Meanwhile, since Mr. Ofori-Atta announced the government’s decision to introduce a 1.75% levy on all electronic transactions from January 1, 2022, stakeholders have been divided over the initiative.
Although the government has argued that it is an innovative way to generate income, dozens of citizens have expressed varying feelings about its relevance.
Even though others have argued in favor of the tax, part of the population thinks that the 1.75% electronic tax is an insensitive tax policy that will exacerbate the already existing difficulties in the country.
The minority in Parliament has pledged to reject the electronic tax in its entirety.
Finance Minister Ken Ofori-Atta, during the presentation of the 2022 budget on Wednesday November 17, announced that the government intended to introduce a tax on electronic transactions (e-levy).
The levy he revealed is introduced to “widen the tax net and the rope in the informal sector”. This followed a previous announcement that the government intended to end the collection of road tolls.
The proposed levy, which will come into effect in 2022, is a 1.75% levy on the value of electronic transactions. It covers mobile money payments, bank transfers, merchant payments, and inbound remittances. There is an exemption for transactions up to GH Â¢ 100 per day.
Explaining the government’s decision, the finance minister revealed that the total digital transactions for 2020 are estimated to be over GH Â¢ 500 billion (around $ 81 billion) compared to GH Â¢ 78 billion ($ 12.5 billion). ) in 2016. Thus, the need to expand the net tax to include the informal sector.