Prime News Ghana

Telcos, Communications Ministry meet today over momo tax

By PrimeNewsGhana
Communications Minister, Ursula Owusu-Ekuful
Communications Minister, Ursula Owusu-Ekuful
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The Ministry of Communications and Digitalisation and telecommunication companies are set for a meeting today, Friday, November 19, 2021 over the proposed charges on mobile money transactions.

Communications Minister, Ursula Owusu-Ekuful said the meeting is essential as the government seeks to widen the tax net to finance the development agenda of the government.

“The service providers are collecting 2%, one from the sender and another from the receiver. I think this needs to be relooked. There is more than can be done to widen our tax net,” she told GHOne.

This fee, according to the Finance Minister, Ken Ofori-Atta, is to enhance financial inclusion and protect the vulnerable.

READ ALSO: Momo tax is very wrong, will widen inequality – Prof Bokpin

Transactions covering mobile money payments, bank transfers, merchant payments, and inward remittances will have the levy imposed on them and will be borne by the sender.

However, the levy will be waived for transactions that amount to GH¢100 or less in a day or approximately GH¢3,000 per month.

The government says portions of revenue collected from the levy will be used to support entrepreneurship, youth employment, cybersecurity, digital, and road infrastructure among others.

It is the expectation of the government, that the implementation of the new policy will come into force effective January 1, 2022, if the appropriation is passed.

Meanwhile, the Minority in Parliament has vowed to resist the government’s decision.

Currently, users and recipients are charged about 1% each on every transaction.