John Kumah Cries Over 24% Drop In Mobile Money Transactions After E-Levy Introduction

According to Deputy Finance Minister John Ampontuah Kumah, the government expects a 24% decline in Mobile Money transactions following the implementation of the Electronic Transfer Levy, or E-Levy.

“We also found out through our research that there will be roughly a 24% attrition rate in the three to six months after we launch it.”

He told CitiTV in Accra, “The research also taught us what needed be done to bring these folks back after a period, and we have all these things in place.”

Despite this, the Ejisu MP stated that the administration has a plan in place to educate the public about the controversial 1.75 percent levy on electronic transactions, which the Minority in Parliament has opposed.

“It is a matter of engagement and letting people understand that, don’t avoid it. It is your pride of place as a Ghanaian to know that your contribution is helping to build your country.”

Mobile money Association of Ghana has petitioned the Minority Caucus in Parliament to ensure the new Electronic Transaction Levy (E-Levy) is rejected when it is put before the house.

According to the group, the analysis they did on the E-levy following its introduction in the 2022 budget shows its implementation will pose a challenge to Ghanaians and agents and have some effects on the economy.

Presenting the petition to the leadership of Minority, the General Secretary of the Association, Evans Otumfour, cited amongst others that approval of the levy will undermine the country’s cashless system job losses and affect the government’s digitisation drive.

But Mr Kumah also said government is “more than confident” that the drop in transactions “will not lead to job losses.”

The Minority has mounted a strong defence against the inclusion of the 1.75% levy in the 2022 budget, claiming it will only worsen the economic burden of the citizenry.

But, according to Finance Minister, Ken Ofori-Atta, the levy will increase the country’s tax-to-GDP from 13% to a targeted 16% or more.

The other budget components have been approved, except for the E-Levy, which the Minority vows to fight vehemently.

Meanwhile, the Mobile Money Association has stated that it will be in government’s interest to extensively look at the levy and its impact before its passage and implementation.

Source: GhanaFeed.com