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E-Levy: Over 40% of MoMo transactions are under ¢100 – Deputy Finance Minister

According to Ghanafeed, Abena Osei-Asare, the Deputy Minister of Finance, more than 40% of mobile money transactions in Ghana are under $100 each day.

According to government data, more than 40% of mobile money transactions are less than GH100 per day, an issue that prompted the government to eliminate taxes for this group.

“The majority of mobile money subscribers are low-income earners; thus, you can see that the government did some research and concluded that those earning less than GH100 should be exempt,” she said.

The Deputy Finance Minister stated this at the official start of a four-day sensitization workshop on the electronic transaction levy for personnel of the Information Service Department (ISD) across Ghana (E-levy)

The program, which is run by the Ministry of Finance, aims to equip the ISD to launch a public education campaign to educate Ghanaians about the E-relevance. levy’s “The government believes that if you earn more money, you should be able to contribute more to the development of our country,” Abena Osei Asare remarked.

Customers of commercial establishments who make payments to purchase goods and services do not have to change their method of payment, as there is no E-levy charge on this if the establishments are registered with GRA for VAT or Income Tax, according to the Deputy Finance Minister, who is also an MP for Atewa East in the Eastern Region.

She explained to ISD staff the rationale behind the E-levy, stating that according to GRA records, about 20% of the Ghanaian population is eligible to pay taxes, but that number is lower – implying that many Ghanaians do not pay income tax, and that the government hopes that the E-levy will help the country widen the tax net to include a larger portion of the population who are eligible to pay taxes.

She also noted that the E-Levy was introduced to help with income mobilization in order to address excessive unemployment and inadequate physical and digital infrastructure, such as roads, hospitals, and schools.

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