The e-levy on mobile money transactions has a cap of ghc100 to protect the poor – Deputy Finance Minister
The GH100 cap for the e-levy, according to Deputy Finance Minister John Kumah, is intended to safeguard the poor and vulnerable in society.
The Ministry conducted a poll, according to Dr. John Kumah, and the results inspired the decision to exclude transactions up to GH100 from the fee.
If approved by Parliament, the e-levy, which was proposed by Finance Minister Ken Ofori-Atta when he presented the 2022 budget, will take effect in January 2022.
The e-levy on mobile money transactions has a cap of ghc100 to protect the poor
The exception, according to Dr. Kumah, will allow the numerous underprivileged individuals who rely on mobile money to continue utilizing the service.
“So we discovered that roughly 30% of Momo users in Ghana do not earn more than GH100 per day, which represents the impoverished segment of Momo users.” Any Momo transaction between GH100 and GH100 was exempted under this regulation.”
On Thursday, the Deputy Minister spoke on Joy FM’s Super Morning Show to address concerns raised by the budget presentation to Parliament on Wednesday.
He underlined that the expense of the 1.75 percent levy on e-transactions over GH100 will be borne by the sender, not the receiver.
He said that this is because most individuals who get money online are in the same category as those who require assistance and so do not need to be taxed.
“In terms of the capacity to pay principal in tax, this is one of the progressive taxes.” In terms of reach, it is one of the fairest taxes.”
“If you are a banker and you transmit Momo (mobile money), and you hit the threshold, you pay,” Dr. Kumah explained the e-progressive levy’s nature. It covers you if you’re a carpenter, mason, or farmer who sends within the threshold. There’s no evidence that we’re too focused on a certain group of people.
“You gain roughly GH3000 if you multiplied the GH100 cedis every day by the month.” So, according to our calculations, if you earn less than or equal to GH3000, you are excused from paying the e-levy. Your GH100 will be excused if you pay within a day of the transaction. If you’re sending GH150 all at once, the first GH100 is free. It indicates that you are paying on the GH50.
We’ve set it up such that anyone earning up to GH3000 in a month is exempt up to that amount, presuming they’re paying it all out to someone. That is the rule. If you submit it all in one day, the first GH100 will be tax-free, but the remaining GH2,900 will be subject to the tax.
“We’re arguing that if you can send GH2900 in one day, you should be willing to help us construct our country.” He stressed, “Nobody would establish this country for us.”