Minority Fumes At Momo Tax; Vow to Oppose It

The Minority in Parliament has vowed to resist the government’s decision to impose a 1.75 percent levy on all electronic transactions.

The 1.75 percent levy will be imposed on transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances.

The Finance Minister, Ken Ofori-Atta, who disclosed this during the presentation of the 2021 Budget Statement, said the levy is aimed at enhancing financial inclusion and protecting the vulnerable.

Speaking to the press after the Minister’s budget presentation Ranking Member on the Finance Committee of Parliament,  Cassiel Ato Forson said the new levy will “only increase hardship and compromise inward remittance.”

He said the Minority will thus “stand by Ghanaians in opposing the momo tax.”

The levy will be waived for transactions that amount to GHS 100 or less in a day, or approximately GHS 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.