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The Minister appeared on live TV this week to defend the imposition of a 1.75% tax on electronic transactions. The E-levy has become known as the MoMo – Mobile Money – tax.
In a Facebook post of Friday, November 19, 2021, he wrote: “So, you’re saying if someone can send 100 cedis (17 dollars) a day via momo, then that person is not poor? How much does your lunch cost, madam?”
Another journalist who has waded into the issue is Programs Manager at the Despite Media Group, Afia Pokua, who said she was shocked at the comment adding that it was symptomatic of ruling New Patriotic Party officials, some of who she described as detached from realities of life.
Vim Lady’s wrote on Facebook: “NPP GOVERNMENT DIER? “We have the men” “We have the men” But SOME OF THEM are completely cut off from the REALITIES of life. I’m so shocked.”
The post is accompanied by a video of Ursula stating: “Now if you have more than a 100 cedis to send a day, then you are not poor, yes. So if you really are poor and you are in a position to send 100 cedis a day, then we need to reclassify our definition of who the real beneficiaries of this are.”
About the 1.75% levy on electronic transactions
Ken Ofori-Atta introduced a new 1.75% levy on all electronic transactions such as Mobile money transactions, remittances and other electronic transactions.
Fees and charges of government services have also been increased by 15%.
The Finance Minister explained, “It is becoming clear there exists an enormous potential to increase tax revenues by bringing into the tax bracket, transactions that could be best defined as being undertaken in the informal economy.
“As such government is charging an applicable rate of 1.75% on all electronic transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances, which shall be borne by the sender except inward remittances, which will be borne by the recipient.
“To safeguard efforts being made to enhance financial inclusion and protect the vulnerable, all transactions that add up to GH¢100 or less per day, which is approximately ¢3000 per month, will be exempt from this levy,” Ofori-Atta revealed.
