E-levy will collapse Mobile Money business


MP for Ningo Prampram, Sam George

The Member of Parliament for Ningo Prampram, Sam George, has opined that the introduction of E-levy will collapse the Mobile Money business.

The E-levy has gained momentum after it was mentioned in the 2022 Budget read by Minister of Finance, Ken Ofori-Atta in Parliament.

Reaction to this in an interview on Joy News, Monday, Mr George said the 1.75% tax is too high for vendors and consumers.

According to him, the introduction of the mobile money idea in itself was not warmly welcomed by banks and average Ghanaians who were trading with physical cash.

He further revealed that mobile money was introduced 14 years ago but was accepted by banking institutions and traders four years after its introduction.

Based on this, Mr George believes the levy will discourage Ghanaians to continue adopting the phone wallet system, which will in turn kick the MoMo vendors out of business.

“Even four years ago you will go to a big shop but they refuse to accept mobile money, you will go to Makola market and they refuse to take mobile money. It has taken us 14 years for people to accept mobile money payment. Mobile money has been in operation since 2009 and has taken us 12 years for people to finally accept mobile money in the country. Just people now accepting mobile money you are bringing e-levy,’’ he revealed.

He again revealed that other countries which were engaging in mobile money business collapsed the business after the introduction of e-levy on their mobile money system.

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‘’In Uganda, it affected mobile money revenue by 80%, In Kenya, they saw 43% deep in transaction value, government had to reverse the policy after two years, go to Spain they introduced the digital tax but in 2019 it cost them 592 billion Euros,” he said.

Mr George categorically stated that the E-levy on mobile money must be scrapped as this policy is set up to fail.

‘’People sit down and say if I make any transaction above Ghc 100 I will have to pay 1.75%, therefore, I will not engage in such. Even the 1% charge by service providers must be scrapped,’’ he said.

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