Mobile Money Tax Of 1.75% Will Expand Tax Net – Old Tafo MP

The Member of Parliament for Old Tafo Constituency in the Ashanti Region, Vincent Ekow Assafuah, has said that the move by the government to implement the e-levy of 1.75% is to ensure equitable tax regime.

The MP said most Ghanaians who are not in the formal sector do not pay tax and therefore, it was important for the government to widen the tax net with the introduction of the e-levy of 1.75%.

The introduction of the e-levy by the Finance Minister during the 2022 budget presentation has raised concerns as many thought it would put hardship on the ordinary Ghanaian.

Explaining further on 3FM’s Sunrise hosted by Alfred Ocansey on Wednesday, the MP for Old Tafo said” we need a tax system that is equitable. We don’t need a tax system that is inequitable”.

“In our setting, it is the momo system that we can have a tax network that captures all. Other people are not working in the public sector and so they are not in the tax net”.

Mr. Assafuah said “in principle, it is right for everybody to pay tax”.

“The quantum that is being charged may be large and that can be debated but as to paying, everybody would have to pay”.

He explained that “the momo will give the government the opportunity for everybody to be taxed because now, almost 80% of Ghanaians are using momo”.